Finsure reports record Q2 settlements

by Malavika Santhebennur•05:40 AM, 14 Feb 2020•11 minute read

The mortgage aggregator has posted record settlements for the second quarter of the 2020 financial year, and grown its broker numbers.

In an update to the Australian Securities Exchange (ASX), BNK Banking Corp has released the financial results of its mortgage aggregation business Finsure, reporting loan settlements of $3.84 billion over the second quarter of the 2020 financial year (2Q20).

You’re out of free articles for this month

To continue reading the rest of this article, please log in.

Looking for more benefits? Become a Premium Member.

Finsure also closed the quarter with record monthly settlements of $1.43 billion in December 2019, up 24.3 per cent on the previous corresponding period.

This subsequently brings BNK group’s total aggregation loan book to $41.9 billion, up from $35.5 billion in 2Q19, and from $39.8 billion in the previous quarter.

Commenting on the results, BNK Bank managing director Simon Lyons said the mortgage aggregator’s results come despite a subdued lending market environment.

“It’s no secret that between the banking royal commission and a raft of regulatory changes in [2018-19], the lending landscape has dramatically evolved from where we were two years ago,” Mr Lyons told The Adviser.

“Over the last 12 months, mortgage brokers have faced a subdued housing market and a tightening of credit policies.”

Mr Lyons attributed the rise in settlements in the second quarter to a favourable upturn in the market as well as network growth within the aggregator.

He also said the aggregator has allocated resources into education and training programs to keep brokers up to date on changes affecting the industry, and expanded its compliance offering to ensure brokers keep pace with their obligations.

BNK reported Finsure’s broker numbers increased by 84 year-on-year, representing growth of 5.3 per cent. Broker numbers have grown from 1,583 to 1,667.

BNK said this figure remains important to the group and the aggregation division as Finsure continues to diversify its revenue base away from commission splits to recurring earnings from fees, subscriptions, training and compliance.

“The importance of commissions for our business cannot be understated. It is vital for our brokers and forms a significant part of our revenue,” Mr Lyons told The Adviser.

“However, Finsure offers a range of services for brokers, such as compliance support, software subscriptions, and digital marketing solutions, that also contribute to our revenue base.”

BNK also released its proprietary Infynity CRM platform last year, which the bank said would use predictive data to provide insights into broker behaviour, to enable them to proactively make changes to their business.