An ASX-listed lender has revealed its growth plans for the third-party channel after establishing partnerships with a handful of major broker groups.
In a trading update yesterday, marketplace lender DirectMoney announced that it had settled approximately $1.4 million of new personal loans over the first quarter of the 2016 financial year.
Month-on-month settlements are growing at over 50 per cent and $7.76 million of personal loans have been written to day to over 430 borrowers.
The lender said that establishing a product distribution platform through the broking industry has been a key focus for the board and management team.
Distribution agreements with four broker aggregators were secured during the quarter, and another in October.
LoanMarket, Finsure and Smartline have all partnered with the lender. As of this week, 100 accredited finance brokers have the ability to offer DirectMoney loans to their customers. The group said more agreements with large broker aggregators are pending.
DirectMoney executive chairman Stephen Porges said the first quarter of 2016 financial year has started well for DirectMoney.
“We have successfully established growth platforms to build a quality loan book through both consumer- direct and third-party channels.
“This is reflected in the very strong quarter-on-quarter growth in loans written during the period which has been matched by an obsessive focus on credit assessment,” he said.
Mr Porges, a former chief executive of Aussie Home Loans, said DirectMoney has a number of opportunities to significantly scale up its operations through the finance and mortgage broking and direct-to-consumer channels.
“Both will further cement DirectMoney’s position as the leading marketplace lender in Australia,” he said.
The lender has continued to invest in its team with new positions established in broker support, loan processing and IT development.
Peter Beaumont was appointed chief executive officer during the quarter, bringing over 20 years of banking experience gained with Citibank, UBS, ABN AMRO and BAML.
“We are confident that DirectMoney is still in the very early stages of its growth and we believe loan volumes will continue to grow.
“Performance to date validates our strategy and illustrates there is well-entrenched acceptance for marketplace lending in Australia,” Mr Beaumont said.
[Related: Listed lender ramps up broker distribution]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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