Firstfolio targets personal loan market

Under the terms of the joint venture, Firstfolio and Evergreen, a provider of personal finance products and services across Australia and New Zealand, will develop consumer finance products that will be distributed directly to borrowers through Firstfolio's national network of affiliated brokers.

Speaking to The Adviser, Firstfolio's chief executive officer Mark Forsyth said the joint venture was another step towards the company's overall goal of creating a holistic and diversified business.

"This is a great opportunity for Firstfolio to draw on Evergreen's advanced processing systems and capabilities in personal lending, to meet growing demand for specialist finance products. The partnership reflects our strategy of introducing additional financial products through Firstfolio's significant national distribution network," Mr Forsyth said.

"I have always been of the opinion that we need to diversify because the industry demands it. Brokers that don't diversify their core offering risk being left behind.

"We want to give our broker partners every chance of success and every opportunity to build an incredibly successful business and we know that diversification will help them do just that."

Mr Forsyth said brokers were increasingly asking for personal finance products that they could cross sell to clients.

"Some brokers have clients that want to get married or buy a car etc. Instead of refinancing their home loan, it is often easier to take out a personal loan and our joint venture agreement with Evergreen allows us to meet our growing broker demands," he said.

Looking forward, Mr Forsyth said the company planned to diversify and ramp up its presence in other markets including the self-managed super fund space.

"We have an SMSF product, but we haven't really promoted it. I think this is going to be a market that will take off, but for the moment we are just taking a wait and see approach."