An ASX-listed lender is continuing its expansion into the third-party channel with the announcement of a new partnership with a national branded broker group.
In a trading update late on Wednesday, marketplace lender DirectMoney announced a new partnership arrangement with Smartline.
Stephen Porges, DirectMoney executive chairman, said Smartline have a strong team and a great business.
“We are very pleased to be providing their many franchisees with access to DirectMoney’s online personal loan platform,” Mr Porges said.
“We are determined to ensure that Smartline’s clients not only get a great deal on their home mortgage but also receive a very competitive, immediate personal loan product.”
In August, DirectMoney announced strategic partnerships with Loan Market and Finsure.
Mr Porges is the former CEO of Aussie Home Loans. Given his background, the new third-party partnerships make perfect sense for a company looking to build scale.
Mr Porges admits that it has never been easy for brokers to diversify into the personal lending space. However, he’s confident that a simple approach could see mutually beneficial partnerships between DirectMoney and Australian mortgage brokers.
“I think we have a unique insight to the industry, and we’ve developed our model specifically for it,” Mr Porges said.
“A personal loan generally lasts for only three or four years, so it can be used by brokers as an effective client retention tool for home loan customers,” he said, adding that the opportunity for brokers to grow their business through personal lending is “very significant”.
Partnerships with Loan Market and Finsure give the groups access DirectMoney’s technology-based lending platforms and a dedicated team to assist them and their brokers further service their customers.
Mr Porges said there will be a unique portal for brokers who use the DirectMoney platform – which is “ridiculously easy” to use.
“Once we become more developed with groups, we’ll develop specific platforms for each,” he said.
“Eventually the data will be pre-populated, so brokers won’t have to re-enter the information, and we’ll be able to approve the personal loan at the same time or pretty close to when the broker is doing the mortgage.”
Brokers who use the DirectMoney platform are paid a flat fee irrespective of the size or length of the loan.