Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Westpac cuts referral ties with Prospa
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Westpac cuts referral ties with Prospa

westpac logo westpac logo
Tas Bindi 2 minute read

The major bank’s referral relationship with small business lender Prospa has come to an end, as the bank looks to develop its own products.

Westpac has decided not to renew its direct referral relationship with Prospa, which expired at the start of June.

The bank said that there are two reasons for its decision: low referral volume and it is developing its own competitive products.

A Westpac spokesperson clarified that the bank only referred business to Prospa in “unique circumstances where [it] didn’t have a product to meet customer needs”.

“We made the decision to not continue our contract with Prospa because we are working on developing our own Westpac products to satisfy more of our customers’ needs,” Westpac said.

Advertisement
Advertisement

The spokesperson also noted that its contract with Prospa expired prior to the small business lender indefinitely deferring its listing on the Australian Securities Exchange (ASX), which was scheduled for midday on 6 June 2018.

Prospa revealed in a disclosure to the ASX that the postponement was so that it could “clarify queries raised by ASIC [on Tuesday] in relation to Prospa’s small business loan terms”, which it further noted was “in the context of an industry-wide review”.

The Westpac spokesperson additionally clarified that Prospa undertook its own customer credit checks and that the bank did not refer anyone who was previously refused a Westpac loan.

[Related: Prospa further delays ASX listing]

Westpac cuts referral ties with Prospa
westpac logo
TheAdviser logo
westpac logo
Tas Bindi

Tas Bindi

Tas Bindi is the features editor for The Adviser magazine. 

Prior to joining Momentum Media, Tas wrote for business and technology titles such as ZDNet, TechRepublic, Startup Daily, and Dynamic Business. 

You can email Tas on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

FROM THE WEB
more from the adviser
tick document ta Conversion rates increase despite credit crackdown

An increasing number of loans lodged by brokers are progressing t...

court gavel ta Identity theft ring responsible for multimillion-dollar fraud

ASIC and the AFP have begun court proceedings against suspected m...

SME broker bootcamp How brokers can help support SME clients grow

Helping SME clients secure finance is one aspect of a finance bro...