Resimac is in expansion mode, betting big on its newly-acquired asset-based finance division.
The Australian non-bank lender revealed this week that it has successfully completed the transfer of roughly 100,000 customers from Westpac's auto finance and novated leasing-back book to Resimac. The migration follows Resimac's October 2024 acquisition of the bank's auto loan portfolio. At the time, the deal was valued at roughly $1.5 billion.
At present, Resimac has an asset finance portfolio worth more than $2.7 billion, with total assets under management valued at more than $15.7 billion.
But, Susan Hansen, interim chief executive officer at Resimac, said the acquisition, and subsequent customer migration, are all part of the firm's growth strategy, plans to increase its AUM and build out its auto finance business. She described it as "a pivotal moment" in Resimac's evolution.
"[It] allows us to strengthen our position in the market and broaden our product suite, paving the way for more choice, flexibility and innovation in auto finance solutions," Hansen said.
Prior to the acquisition, Resimac had just 13,000 customers in its asset finance division. The company said the purchase will allow Resimac to broaden its line-up of auto finance products, and is anticipating "long-term returns and greater capital efficiencies" off the back of the expanded business.
In addition to the growth in asset-based finance in Australia, consumers are also increasingly taking out loans for cars, creating added opportunities for lenders and brokers alike. In the December 2024 quarter, new loan commitments for road vehicles were valued at approximately $4.69 billion, up from $4.52 billion the three months prior, according to data from the Australian Bureau of Statistics.
Chris Paterson, Resimac's general manager of distribution, added that brokers can benefit too, by understanding the complexities of asset-based lending and which consumers would be a good fit for this type of specialty lending.
"It enables brokers to grow their business and expand," Paterson told Australian Broker. "And aggregators are really pushing diversification with brokers. There are [still] some brokers who have traditionally focused on mortgage products and are happy to refer asset finance products out to asset finance specialist brokers. And on the flip side, there are asset finance brokers who have set up their business to cater to that. They don't want to diversify. But for the brokers who don't want to say no to a customer, this product option can help them provide a whole product suite to their customers."
The company said it's now in a "hyper care phase" as the new customers become acquainted with Resimac's operation.
"While the job isn’t finished, we’re confident that the work done so far will ensure a smooth experience for our new customers as we continue to integrate them into our business," Hansen said.
