The third-party channel remains “very important” to alternative lender Keystart, one of its executive managers has said, following the company's sale of a large proportion of its loan book to Bendigo and Adelaide Bank.
In a recent trading update to the ASX, Bendigo and Adelaide Bank announced that it had acquired a portfolio of approximately $1.35 billion of standard residential loans from the Western Australia-based alternative lender.
The regional bank agreed to purchase the $1.35 billion of standard residential loans from Keystart’s total loan book of approximately $4 billion.
Speaking to The Adviser, Keystart executive manager of sales, marketing and client relations Lisa Di Cesare explained that the lender will continue to distribute through brokers and support the third-party channel.
“We do distribute through brokers and we will continue to support brokers and the third-party channel because they are, and will remain, a very important part of how we run our business,” Ms Cesare said.
She added that Keystart’s decision to sell a portion of its loan book was “an important step” for the lender as it helped to reduce its reliance on the Western Australian government’s borrowings.
“Now that we’ve reduced our dependence on the state government we will be able to help more Western Australians into a home of their own.
“Without this process we would have reached the cap of our borrowing limits which would have restricted the number of people we could help into a home of their own,” Ms Cesare explained.
Ms Cesare emphasised that the move will not change the lender’s relationship with the broker channel or its “strong and consistent record of low arrears and losses”.