A leading aggregator has merged with a bank after receiving approval from the lender’s shareholders.
The merger between Finsure and WA regional bank Goldfields Money Limited (ASX-GMY) will create Australia’s "first truly scalable digital challenger bank” that will “help both companies to grow and improve profitability”, according to the official announcement.
Describing the deal as a win-win, Goldfields Money Limited executive director and CEO, Simon Lyons, said, “We will be creating Australia’s first truly scalable digital challenger bank focused on providing lending solutions for Australian consumers via broker distribution.
“The combination of Goldfields Money and Finsure will create a market leading digital banking platform that will shake up the Australian banking sector and offer consumers a new banking experience and provide a viable alternative to the major banks.
“We will be using technology to challenge the way banking is done, adapting to our customers’ needs, reducing costs and striving to innovate. Our new digital bank will be a trailblazer in the banking industry and offer customers a personalised experience.”
Co-founder and MD of Finsure, John Kolenda, added, “The combined entity is going to provide enormous benefits to our broker network, significantly boosting their service proposition and enabling them to offer customers better home loan products and rates.”
“There will be greater opportunities to expand our product offerings to our brokers and provide them with greater product choice and customer solutions. They will have access to leading mobile lending solutions, great deposits and other leading products. Our brokers will also be able to acquire ownership in the new entity given we will be listed on the ASX.”
Finsure acquired LoanKit in 2013 and has become one of the fastest growing aggregation businesses in the industry with more than 1400 brokers.
Last month, Kolenda described the potential merger with Goldfields Money as “transformational”.