MELBOURNE (CU)_Over the recent past, particularly following the COVID-19 pandemic, almost every sector across Australia’s economy, including the mortgage broking industry, has been experiencing a digital transformation. Several top national mortgage brokers in the country announced fintech partnerships this year, while some major banks like Westpac continue to own some of the most successful digital brokers. On the other hand, experts say that the average rate for existing owner-occupier loans offered by major banks is nearly 0.5 per cent higher than new loans, which yield almost $9 billion in annual revenue for the service providers, making it difficult for bank apps to serve customers the same a broker is able to.
Against such a background, several former mortgage executives from the Australia and New Zealand (ANZ) Banking Group and National Australia Bank (NAB) have decided to jump ship from the leading banks to create up a digital mortgage broker and app with the aim of helping customers to reduce interest rates and bank fees and encourage them to pay off their home loans faster.
In November last year, Finspo kicked off its capital raising with a $2.7 million Series A round backed by board members Ashok Ramamurthy, previously CFO of the consumer bank at ANZ and Mark Armour, a director of UniSuper. Meanwhile, former Executive General Manager Consumer Lending at NAB, Angus Gilfillan, has been appointed as the chief executive of the digital mortgage broker. Andrew Hagger, NAB’s former head of wealth, is an investor in the company who has just raised $4 million in a Series B round.
So, how does the app work?…
