Loan Market to buy NABregators

National Australia Bank (NAB) has reached an agreement to sell 100% of its broker aggregation business – PLAN Australia, Choice and FAST – to Loan Market Group.

According to the big bank, the deal follows its strategic review of the broker aggregation business and is in line with NAB’s decision to simplify and focus on its core banking business.

Under the agreement, Loan Market will acquire 100% of NAB’s three broker aggregation businesses, the Business Credit Licensee and Compliance Services Provider (BLSSA), associated broker aggregation technology , including the Podium technology platform, commission systems, and related sales and operations. services.

However, the four businesses – Loan Market, PLAN Australia, Choice and FAST – wwould continue to operate independently of each other, Loan Market Group said. They will continue to have their own aggregation agreements, their own executives, and their own sales and marketing teams.

During the transition, the brands under PLAN Australia, Choice and FAST will continue to be led by Anja Pannek, CEO of PLAN Australia, Stephen Moore, CEO of Choice Aggregation Services, and Brendan Wright, CEO of FAST Group.

Completion is subject to satisfactory customer obligations and NAB will provide certain warranties and indemnities.

Completion is expected to take place in early calendar year 2021.

The deal is not expected to have a significant financial impact on NAB, the big bank said.

An important step

Commenting on the purchase, Loan Market Executive Chairman Sam White said the purchase represents a significant milestone in the history of the major brokerage.

“We believe passionately in the mortgage broker industry; the competition that brokers generate in the Australian financial sector and the value that they offer to clients. It’s no surprise that brokers have settled six out of 10 home loans in Australia this year,” he said.

“We are delighted to welcome PLAN Australia, Choice and FAST brokers and their teams to our group and look forward to working with them and supporting the next evolution of these businesses.”

Mr. White added that the purchase would allow the group to invest significantly in technology and innovations, provide business owners with more flexibility in business modeling and the ability to share the benefits of scalability.

“The acquisition means we can offer more options to our members. This will allow our business owners to decide what value proposition and support structure they need to thrive,” he said.

“The scale of the purchase will also allow us to invest more in technology, innovation and compliance-driven technology to benefit more brokers and, importantly, their clients.”

Speaking of the acquisition, Ms Pannek said: “I am delighted at the opportunity this represents for our valued members of PLAN Australia and the team. This will allow 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 added insights of the Loan Market Group.

Mr. Wright also spoke about the purchase saying, “This opportunity will allow us to continue to support FAST brokers with a clearly differentiated value proposition for financial brokerage businesses in a rapidly changing financial services landscape, supported by lending expertise and experience. market group. »

Commenting on Loan Market’s purchase of Choice Aggregation Services, Mr Moore said: “The White Family Group is a true Australian success story. It is a family owned and operated business with a fantastic culture that we hope will resonate with Choice members, and it aligns with our goal of providing exceptional service and support.

NAB Group Personal Banking Director Rachel Slade said NAB will continue to have a connection to the broker market through broker-issued loans.

“We continue to look for opportunities to support the brokerage industry and serve our customers well. Brokers play an important role in the loan market and provide access to credit for many Australians,” Ms Slade said.

“As the broker market evolves, it’s a good time for us to move out of broker aggregation and focus on lending at NAB.

“Similarly, this agreement provides Loan Market Group with leading Australian brokerage aggregation groups, PLAN Australia, Choice and FAST, proven expertise in the residential and commercial lending industry, Australia’s largest lending licensee in Australia and an award-winning technology platform, Podium.

“The changes allow PLAN Australia, Choice and FAST to continue to deliver great results for brokers and customers. Loan Market Group brings strong credentials and will enable brokers to continue to grow their business and respond to customers.

“NAB looks forward to continuing our strong relationship with Loan Market Group as the bank behind the broker.”

The PLAN Australia, Choice and FAST network of brokers, which provide aggregation services for residential and commercial mortgage brokers, has approximately 4,100 brokers.

According to Loan Market, this is not the first time that the group has used the strategy of offering brokers the choice between a retail offer and a wholesale offer.

In 2012, the leading brokerage bought New Zealand wholesale mortgage aggregator Allied Kiwi, through which New Zealand Financial Services Group was formed.

Loan Market works with a panel of 62 lenders and supports a network of over 700 brokers across Australia and New Zealand, with a further 850 brokers trading under their own brand.

[Related: Treasury to make unfair contract terms unlawful]

Loan Market to buy NABregators

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Last updated: November 24, 2020

Posted: November 12, 2020

Malavika Santhebennur

Malavika Santhebennur

Malavika Santhebennur is the Mortgage Headlines Editor at Momentum Media.

Prior to joining the team in 2019, Malavika held roles at Money Management and Benchmark Media. She has been writing about financial services for six years.

Priscilla C. Carnegie