Fintech lender partners with leading Australian bank

by Julia Corderoy22 Feb 2016
Marketplace lender DirectMoney, headed by ex-Aussie CEO Stephen Porges, has entered a funding agreement with a large Australian bank.

The fintech company has entered into an agreement with Macquarie Bank which will see the lender purchase a $A5 million portfolio of loans originated by DirectMoney.

“As our loan volumes continue to build, we are very pleased to have reached an agreement with Macquarie. This deal allows both teams to work together in a collaborative manner to take DirectMoney's marketplace lending model to the next level,” DirectMoney chairman Stephen Porges said.

“DirectMoney continues to invest in building a robust, scaleable operating platform and strong, broker-partner loan origination channels.”

Macquarie’s loan purchase, and their capital markets experience, will assist in diversifying and strengthening DirectMoney’s loan funding channels. 

“With the securitisation market in the US now having issued more than $US8 billion of loans since 2013 we are delighted to work with Macquarie towards offering this product to Australian investors,” Porges said.

Initial fees will be paid to Macquarie by way of shares in DirectMoney. In addition, Macquarie will receive an interest-based return on the portfolio and subject to ongoing performance based triggers, have rights to acquire further shares. Any rights to such shares will be subject to a cap of 10%. 

Porges says DirectMoney will continue its diversified approach to fund raising in both the retail markets and the institutional debt capital markets, thus taking full advantage of the growing opportunity in the fintech sector.