A Sydney-based mortgage manager and a Gold Coast non-bank lender will unite to form one group as the non-bank sector continues to consolidate.
Iden Group today revealed that it is merging with Queensland-based mortgage manager Future Financial.
Iden Group CEO Barrie Gaubert has cited the “incredible synergies” between the two companies as the key reason for the merger.
“It goes without saying that this merger opens up a lot of doors for both of our groups. One particular area, where we have the most to gain are the operations of both businesses.”
“By combining the skills of our talented operational teams, we will speed up our processes and further enhance the customer experience.”
“I have no doubt that our broker partners will also see a clear improvement, whilst still being able to work with their trusted brand, whether it be Iden/Better Choice, Future Financial or both.”
Future Financial general manager Troy McLachlan shares Mr Gaubert’s appraisal of the merger.
“When looking at our two organisations, it’s clear to see that Future Financial and Iden Group have a lot in common. We both offer market leading products, we are both profitable businesses, we have strong reputations around the country and we both place customer service as our number one priority.”
“Most importantly, we have similar strategic directions for the foreseeable future. A merger will allow both Future Financial and Iden Group to take advantage of new market segments and grow the businesses much faster than if we were apart.”
“We will be even more mobile in an ever-changing market.”
The merger will take effect from 8 August 2016. It comes just two weeks after listed non-bank lender Homeloans Limited announced plans for merger with RESIMAC, creating a combined mortgage portfolio valued at approximately $13 billion.
The Australian non-bank sector continues to undergo significant consolidation in a market characterised by increased competition and record-low rates, putting pressure on margins.
Last year Australian First Mortgage (AFM) was acquired by Queensland-based National Mortgage Company, creating a combined group worth more than $30 million.
[Related: Non-bank denies YBR takeover talks]