APRA has given the green light to BNK offloading its mortgage aggregator, Finsure, for around $151.6 million.
BNK Banking Corporation has confirmed the sale of its wholly owned subsidiary Finsure to MA Financial Group has secured APRA approval.
The deal is now expected to wrap up on 7 February.
BNK indicated it had entered into binding agreements with ASX-listed asset manager, corporate advisory and lender MA Financial in mid-December.
John Kolenda, co-founder and chief executive of Finsure, will continue in his role as CEO of the aggregator business.
MAF will provide the aggregator with growth opportunities and provide value to its broker network, Mr Kolenda stated in December.
“Finsure is uniquely positioned as a scalable, technology-enabled platform with a differentiated service proposition to become one of the most powerful pieces of financial infrastructure in the Australian residential mortgage market,” he said.
“MAF can support Finsure in this journey through its access to capital, credit and lending capabilities and technology expertise.”
As at 30 September, Finsure serviced more than 2,050 brokers and managed a loan book of around $60 billion.
The business is expected to boost MA Financial’s lending arm.
The group completed a $100 million institutional raise to fund the Finsure purchase on 16 December.
“We are pleased that investors recognise the compelling strategic proposition that Finsure offers – strengthening MA Financial’s lending business and enhancing our vision to develop a scalable, technology-enabled lending platform in Australia’s c.$2 trillion residential mortgage market,” MA Financial chief executives Chris Wyke and Julian Biggins said in a joint statement.
[Related: New year, new owner for Finsure]