Proposed merger “will benefit brokers and customers”

by AB23 Aug 2018

A proposed merger between Finsure Group and the ASX-listed regional bank ADI Goldfields Money Limited (ASX-GMY), will bring “enormous benefits” to the aggregator’s broker network and their customers, according to John Kolenda.

Kolenda, co-founder and MD of Finsure Group said Finsure’s broker partners would be provided with an even greater service proposition if the Goldfields Money merger proceeds, which will enable them to offer customers better home loan products and rates.

Additionally, the merger would create Australia’s “first truly scalable digital challenger bank”. Kolenda believes the combined entity will be “transformational” and enable Finsure to explore other acquisitions and increase investment into its existing broker offering.

In a statement Kolenda says he is “confident” the merger will receive the approval of Goldfields Money shareholders when they meet in Perth on 7 September.

“The exciting thing about the potential merger is it will create Australia’s first truly scalable digital challenger bank focused on providing lending solutions for Australian consumers via broker distribution,” Mr Kolenda said.

"This is exciting for both our brokers and their customers. Furthermore, our brokers will also be able to acquire ownership in the new entity given we will be listed on the ASX.

“We believe the combined entity will enjoy increased scale, material revenue uplift and improved growth prospects which will be highly beneficial to our brokers and their clients. Joining forces with Goldfields Money will enable Finsure to leverage the resources of both companies to provide increased support to our highly valued broker network.

“This in turn will create 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.”

“Just seven years since Finsure was established, the group now has more than 1,400 brokers. The merger is a win-win opportunity which will improve our future growth prospects through simplified capital funds access.”

Through its acquisition of LoanKit in 2013, Finsure has become one of the fastest growing aggregation businesses in the industry.

Kolenda said Finsure’s staff and management have worked hard to add value across all areas of its services to offer an unrivalled service proposition to brokers.

“All Finsure brokers can get all their business needs met under the one roof. We are always seeking ways to improve our support to remain number one aggregator. The merger with Goldfields Money will be a landmark in the history of Finsure,” he added.