Non-bank lender set to launch retail financial planning arm

by Julia Corderoy26 Sep 2014
Non-bank lender, Mortgage House is set to further diversify into financial planning, with a plan to officially launch their retail financial planning arm – Financial Planning Wealth – next month.

The lender already holds a wholesale Australian financial services license, but decided to expand and obtain a retail financial services license – with the intention to expand its offering to include SMSF advice and insurance sales for its “mum and dad” mortgage clients.  

Ken Sayer, CEO of Mortgage House told Australian Broker that the main driver behind this move to further diversify is purely for the benefit to their clients.

“A year and a half ago, we enhanced our lending application and started to really focus on responsible lending. As such, we started asking how much our clients had in their super as a ‘Plan B’ for retirement – and the penny just dropped. We found that a lot of people had super that was just sitting there doing nothing. So we ran a survey with those clients about offering retail financial planning services to provide SMSF property investment and advice as a retirement strategy, and about 90% of respondents said it was a great idea.”

Financial Planning Wealth will be separate from its mortgage lending arm with separate branding, but will remain a 100% subsidiary of Mortgage House. However, Sayer says the plan is to have the two channels working as a partnership, with Financial Planning Wealth leveraging off Mortgage House’s lending clients.

Sayer also revealed that an ex-Westpac planner is set to head the new retail planning arm. The official launch will take place next month. More news to come.