Non-bank lender reveals fintech partnership

by AB21 Aug 2018

A non-bank lender and a fintech start-up have revealed details of a new, “multi-faceted partnership” that will form a “key component” of the lender’s digital strategy.

Homeloans Ltd (ASX: HOM) is to provide funding support of $2m to Athena in line with its own  program of digital innovation and growth, with a focus on the customer experience.

Scott McWilliam, Homeloans’ joint CEO, said the partnership with Athena is a “key component of our digital strategy.”

“We are very excited about this relationship,” he says. “It will enable Homeloans to leverage a platform that has been developed with a best-in-class customer experience as its guiding principle. As the technological evolution of the financial services industry progresses, we are delighted to be working with an organisation that is right at the forefront of digital change.”

Athena – founded in June 2017 by ex-NAB bankers Nathan Walsh and Michael Starkey – is working to deliver Australia’s first cloud-native digital home loan platform. Inclusive of the latest investment from Homeloans, Athena’s total capital rise now stands at $20m.

“The funding support from Homeloans, combined with our super fund partners, means a scalable, faster-to-market opportunity for us to take a bigger slice of the $1.7 trillion home loan market,” Walsh commented.

“The partnership is the perfect fit for Athena. Homeloans’ expertise in securitisation markets enables accelerated growth in our loan book, and flexibility to tap a broad set of wholesale funding options over time, including RMBS issuance,” he added.

As the first issuer in 1988 under its wholly owned subsidiary, RESIMAC Ltd, Homeloans is a pioneer of Australian residential mortgage backed securities (RMBS). Since then it has issued more than $21 billion in securitisation transactions.

Mary Ploughman, Homeloans’ joint CEO added: “This is a mutually beneficial relationship and is a good strategic move for both parties. Homeloans is able to leverage Athena’s digital innovation to further grow and enhance our offerings and at the same time we can provide a funding solution to Athena to further develop its business.”

Athena’s home loan solution will launch later this year in a beta pilot.

 

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