Powered by MOMENTUM MEDIA
the adviser logo
Tech

Minority shareholder places mortgage fintech into administration

by Reporter4 minute read
businessman running holding laptop technology fintech loanflare mortgage fintech administration

Parties associated with a minority shareholder of online mortgage platform LoanFlare have put the company into administration.

The Sydney-based start-up, founded by David Kim and Joshua Shen, was initially built to empower consumers to self-service their home loans by having access to the same loan products and technology used by brokers.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

The software, similar to a CRM system, enables clients to enter applications and upload documentation to their loan applications, and ties in to aggregator CRMs to generate disclosure documents and for lodgement.

LoanFlare later decided to partner with brokers, rather than compete with them, by offering a digital solution to provide efficiencies to the third-party channel.

Advertisement
Advertisement

On the broker side, it also automated workflows and data entry, provided actionable intelligence and featured a comprehensive audit trail.

According to the founders, the administrators were called in over a $20,000 debt.

When asked to comment, Mr Kim and Mr Shen responded: “We are taking action to find a quick and simple solution. The company had in its bank account at the time of the appointment of the administrators more than the amount owed to the secured creditors.

“It’s absurd how a company can be put in administration in such circumstances when the company was willing and able to pay.

We will continue to work diligently in delivering a great product for our early adopters and customers."

[Related: Fintech start-up enters third-party channel]

Minority shareholder places mortgage fintech into administration
businessman racing
TheAdviser logo
businessman racing

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Anja Pannek CEO PLAN

Anja Pannek named MFAA CEO

The board of the Mortgage & Finance Association of Australia (MFAA) has confirmed that Anja Pannek will be the...

READ MORE
mike felton mfaa ta jdayl5

Aggregator heads reflect on Mike Felton’s legacy

Following on the news that Mike Felton is to retire next month and step down as chief executive of the Mortgage &...

READ MORE
melanie kiely afg ta mzh8zm

AFG non-executive director steps down from board

Australian Finance Group Ltd (AFG) has advised that Melanie Kiely will be stepping down from the AFG board to...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more