A Perth-based non-bank lender has assumed control of a domestic competitor, in a move designed to help it “pre-emptively adapt” to “regulatory changes and market developments”.
Personal loan provider and member of German fintech MyBucks Group, Fair Go Finance, has announced that it has acquired non-bank competitor Funco Pty Ltd, which trades as Capfin Money (formally known as Spot Loans).
Fair Go Finance noted that the opportunity to purchase Capfin emerged as parent company Pepkor Asia Pacific put non-core assets up for sale as part of a balance sheet strengthening process.
Following the announcement, Fair Go Finance CEO Paul Walshe said that the acquisition would enable the lender to better adapt to regulatory and market changes, making particular reference to the proposed open banking regime.
“Capfin is a well-run business with a similar compliance culture, which supports the customer retention as we integrate and grow,” Mr Walshe said.
“With a high degree of similarity between our two operating models, this acquisition will support the merged entity to pre-emptively adapt to possible regulatory changes and market developments that will materialise with the evolution of open banking, comprehensive credit reporting and the continued digital uptake in Australia.”
CEO of MyBucks Group Tim Nuy also noted: “It is great to see the Australian business leveraging the capabilities of the group, and we expect the Australian and Asian markets to be key in the future of MyBucks.
“We will continue to look for growth opportunities within these key markets.”
Mr Walshe added: “We have already gained significant market share from larger players over the last 12 months and the combined strength from this acquisition and our technology will continue to drive this migration and higher growth rates.”
[Related: Non-bank lender posts record settlements]
The CEO of Newcastle Permanent has said the lender will continue ...
The customer-owned bank has released a cashback offer for new and...