Tyro is already taking deposits from merchant customers and aspires to begin making loans by the end of 2016, the bank's chief executive Jost Stollman said yesterday.Founded as MoneySwitch in 2003, the company yesterday elaborated on capital raising plans posted to its website early yesterday (and reported in Banking Day).Stollman would not be badgered yesterday into disclosing the interest rates on offer under a pilot scheme.Tyro would "be making an announcement at the appropriate time," he said.Stollman had more to say on lending. "Lending will be step by step," he said.Citing Macquarie Equities research on A$60 billion in unmet cashflow demand, Stollman pitched a tale of progress at a business that's navigated the tough waters of Australian banking.Around 14,000 merchants are in Tyro's reach, the fruits of more than 12 year's labour. For now, this is the target market for cash flow-based loans inspired by a considered set of data."We are data rich. We are in a very good spot to solve this problem. One is the marketing problem. The second is the risk problem," Stollman said."We have been living with prudential supervision and regulation for nine years. We have the experience of a registered entity. We have the technology platform. We can take responsibility and lend money."