Loan Market Group has announced the purchase of NAB-owned aggregation groups PLAN Australia, Choice and FAST.
Under the purchase, the four businesses will continue to run independently from one another, with their own aggregation agreements, leadership and corporate sales and marketing teams.
Loan Market executive chairman Sam White dubbed the purchase a “significant milestone” in the group’s history.
“We passionately believe in the mortgage broker sector; the competition brokers generate in the Australian finance sector and the value they provide customers. It’s no surprise that brokers settled 6 out of 10 home loans in Australia this year,” he said.
“We are thrilled to be welcoming PLAN Australia, Choice and FAST brokers and their teams into our Group and look forward to working with them and supporting the next evolution of those businesses.”
The purchase will allow Loan Market to invest significantly in technology and innovations, according to White, which will help provide business owners more flexibility in business modelling and the ability to share in the scalability benefits.
“The acquisition means we can offer more options to our members. It will empower our business owners to decide which value proposition and support structure they need to thrive,” he added.
“The scale of the purchase will also allow us to further invest in technology, innovation and compliance-driven tech to benefit more brokers and, importantly, their clients.
“This year, we’ve seen the importance of technology and digitalisation like never before, particularly the need to move fast. The Loan Market Group wants to continue to be a leading voice for brokers and remain at the forefront of innovation in time-saving technology, support an unmatched customer experience. This acquisition allows us to do just that,” said White.
CEO of PLAN Australia, Anja Pannek, is thrilled with the opportunity the new arrangement presents for the group's network and its clients.
“This will enable PLAN Australia to continue to deliver our leading premium aggregation offering and in doing so, partner and support our members in this dynamic industry, with the additional insights of the Loan Market Group,” she said.
Choice Aggregation Services CEO Stephen Moore, added that the White Family Group is a real “Australian success story”.
“It is a family-owned and run business with a fantastic culture we expect will resonate well with Choice members, and that aligns with our focus on providing exceptional service and support,” Moore said.
For his part, FAST CEO Brendan Wright said, "This opportunity will allow us to continue to support FAST brokers with a clearly differentiated value proposition for finance broking businesses in a rapidly evolving financial services landscape, backed up by the expertise and experience of the Loan Market Group.”
Under the agreement for the purchase, Loan Market Group will acquire the three aggregation businesses, the corporate credit licence holder and compliance services provider BLSSA, associated broker aggregation technology including Podium and Commissions systems and related sales and operations services. Completion is subject to satisfying customary obligations and is expected to occur in early calendar year 2021.
This article has been updated to include a full quote from FAST CEO Brendan Wright, to more accurately communicate his views as the original reporting failed to do so.