Loan Market Group has signed a new merger, intended to consolidate its asset finance business with the digital marketplace Nodifi.
Personal lending, corporate finance and asset finance will fall under the new consolidated entity, encompassing the recently created Loan Market Group’s asset finance division and Nodifi.
Loan Market Group’s broker network will have access to 80 asset finance support specialists under the agreement, as well as Nodifi’s application and compliance platform.
The group’s approximately 5,000 brokers will also be able to access new unsecured business loan and personal loan markets.
As Nodifi chief executive Tom Caesar explained to The Adviser, his business will have the opportunity to grow with the aggregation giant, while Loan Market Group will gain new asset finance capabilities. and technology.
Mr. Caesar also added that Nodifi was close to moving into aggregation, before deciding to partner with Loan Market Group.
“They obviously have a large distribution network and we have all the technology and the experience in assets, and the more we talked about it, it made sense,” he said.
Loan Market Group overhauled its corporate structure last year, following the acquisition of PLAN Australia, Choice Aggregation and FAST (PCF).
He split the group into a wholesale division, encompassing PCF, and a retail segment, comprising Loan Market and brokerage franchises operating under the Bring Your Own Brand model.
He had also decided to form the trading brokerage and asset finance arm, the creation of which was overseen by former FAST CEO Brendan Wright.
Mr. Caesar said the addition of Nodifi will help attract asset-only brokers.
“Right now they’re managing a lot of assets, but they haven’t had this technology solution or the people there to drive growth,” he said.
“So they hired staff, we built our team. And we want to keep doing it together.
“I think the opportunity is there, with Australia’s largest mortgage aggregator and we can use that to scale much faster than we could on our own.”
Mr. Caesar and his team will remain at Nodifi, which will retain the brand and plans to hire over the next 12 months.
Nodifi reported strong demand for asset finance solutions, seeing a 646% increase in loans originated over the past 18 months.
“Our team will likely add around 25-30 roles over the next 12 months. We need all the staff we can get,” Caesar told The Adviser.
“Probably about half of those [hires] will be in technical roles and then there will be sales roles and operational roles as well. »
It also aims to develop its technology solutions to support the aggregation component of the business.
Meanwhile, Loan Market Group mortgage brokers who occasionally apply for asset finance, business and personal loans should benefit from Nodifi’s support services, education and expertise.
Loan Market Group President Sam White said, “Asset financing for mortgage brokers requires a fully integrated service offering.
“By bringing together our specialists with Nodifi’s market-leading technology platform and highly experienced asset finance staff, Loan Market Group has become the home of all good brokers.”
The merger will be settled on July 1.
Mr Caesar also noted that there was a “strong cultural alignment between two family businesses”.
“I think we both saw the value in each other and it’s been a really smooth process working with them,” he said.
“We’re really excited to crack.”
In April, Loan Market Group confirmed that it had recruited a chief operating officer (COO) and a chief financial officer from Bank of Queensland, to start as its new chief operating officer from July 18.
The new leader, Ewen Stafford, was previously a former director and advisor to Loan Market.
[Related: Great Southern Bank joins Loan Market lender panel]