Who Is LoanKit Aggregation? (Acquired By Finsure)

Feeling unsure about LoanKit Aggregation and how it fits into the mortgage brokering world?

You’re not alone.

Since being acquired by Finsure, LoanKit has been turning heads, leaving many brokers wondering what this means for them.

Let’s explore who LoanKit Aggregation is and how their partnership with Finsure could benefit your business.

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What Is LoanKit and Finsure?

LoanKit was a mortgage aggregator that played a crucial role in the mortgage broking industry. It facilitated connections between brokers and lenders, enabling brokers to offer a diverse range of loan products to their clients. LoanKit was previously owned by Mortgage Choice, a well-known name in the financial services sector.

Finsure, on the other hand, is a retail finance brokerage that provides a broad spectrum of financial services, including mortgage aggregation. The company is known for its innovative approach to financial services, offering brokers access to cutting-edge technology, branding, and marketing expertise. The acquisition of LoanKit by Finsure in August 2013 was a strategic move to enhance Finsure’s market positioning and expand its service offerings.

Understanding the Acquisition Process

Objectives of the Acquisition

The acquisition of LoanKit by Finsure was driven by several key objectives. Primarily, Finsure aimed to solidify its position among Australia’s top brokerages. By acquiring LoanKit, Finsure sought to improve the service and value it offered to brokers and customers, thereby enhancing its competitive edge in the market. Additionally, the acquisition was intended to expand Finsure’s market reach and capabilities, positioning the company for future growth and success.

Scale of the Acquisition

The acquisition of LoanKit significantly impacted Finsure’s scale and operations. Post-acquisition, Finsure’s broker count increased to over 500, reflecting a substantial expansion of its network.

Furthermore, the loan book grew to nearly $4 billion, indicating a significant increase in Finsure’s market presence and financial capabilities. While the financial terms of the acquisition were not disclosed, the strategic benefits were clear, positioning Finsure for continued growth and success in the industry.

Benefits to Finsure from the Acquisition

Growth and Market Position

The acquisition of LoanKit played a crucial role in Finsure’s growth strategy. By integrating LoanKit’s operations, Finsure was able to enhance its market presence and competitive edge.

The acquisition contributed to Finsure’s goal of being within the top five brokerages in Australia within five years, a testament to the strategic value of the acquisition.

Broker Support and Services

LoanKit brokers benefited significantly from the acquisition, gaining access to Finsure’s branding, technology, and marketing expertise. This support enabled brokers to offer a broader spectrum of financial services to their clients, enhancing their value proposition and competitive edge in the market.

The acquisition also allowed Finsure to expand its service offerings, providing brokers with a more comprehensive suite of financial products and services.

Benefits to LoanKit from the Acquisition

Continuity and Enhanced Support

For LoanKit, the acquisition by Finsure provided continuity and enhanced support. LoanKit’s operations continued with increased support from Finsure’s resources, ensuring business continuity and growth.

The acquisition also provided LoanKit with access to a larger team and network, offering economies of scale and enhanced business opportunities.

Brand and Market Presence

Integration with Finsure’s stronger branding and market presence was a significant benefit for LoanKit. The acquisition improved LoanKit’s market presence, enhancing its business opportunities and competitive edge.

By leveraging Finsure’s established market position, LoanKit was able to offer its brokers and clients a more robust and comprehensive range of financial services.

Post-Acquisition Integration

Integration Strategy

Finsure’s integration strategy focused on leveraging its strengths in branding and lead generation to support LoanKit brokers. The company aimed to ensure business continuity and growth for LoanKit brokers, providing them with the resources and support needed to succeed in the competitive financial services market.

Operational Changes

The transition was managed carefully to maintain business operations for LoanKit brokers. Finsure promised larger growth and support through strategic integration, ensuring that brokers could continue to offer high-quality services to their clients.

The operational changes were designed to enhance the value proposition for brokers and customers alike, positioning both Finsure and LoanKit for continued success.

Broker Communication

Effective communication was a key component of the post-acquisition integration process. Finsure’s management held meetings with LoanKit brokers to facilitate a smooth transition and integrate teams effectively.

By ensuring clear communication and collaboration, Finsure aimed to build a cohesive and successful brokerage network, enhancing the value and service offered to clients.

Market Impact of the Acquisition

Market Positioning

The acquisition of LoanKit significantly impacted Finsure’s market positioning. The company was placed among the top 10 brokerages nationwide, with an enhanced capacity to move into the top five.

This strengthened market position provided Finsure with a competitive advantage, enabling the company to offer a more comprehensive range of financial services to its clients.

Competitive Advantage

By combining the broker networks and loan portfolios of both organisations, Finsure was able to create a more robust and competitive market presence. The acquisition strengthened Finsure’s market strategy, providing the company with a competitive edge in the financial services sector.

This strategic advantage positioned Finsure for continued growth and success, enhancing its value proposition for brokers and customers alike.

Future Prospects

The acquisition of LoanKit laid the groundwork for future expansions and scalability in the financial services market. By integrating LoanKit’s operations, Finsure positioned itself for continued growth and success, offering a comprehensive range of financial services to its clients.

The acquisition also provided Finsure with the resources and capabilities needed to expand its market reach and enhance its competitive edge, positioning the company for future success in the industry.

The Role of Technology in the Acquisition

Technology played a crucial role in the successful integration of LoanKit into Finsure. By leveraging advanced technology platforms, Finsure was able to streamline operations and improve efficiency.

This technological integration allowed brokers to access a wider range of tools and resources, enhancing their ability to serve clients effectively. The use of technology also facilitated better communication and collaboration between teams, ensuring a smooth transition and successful integration.

The Impact on Customers

The acquisition of LoanKit by Finsure had a positive impact on customers. With access to a broader range of financial products and services, customers benefited from more competitive loan options and improved service quality.

The integration of LoanKit’s operations into Finsure’s network also meant that customers could enjoy a more seamless and efficient experience, with access to a wider range of financial solutions tailored to their needs.

Challenges and Lessons Learned

While the acquisition of LoanKit by Finsure was largely successful, it was not without its challenges. The integration process required careful planning and execution to ensure a smooth transition and minimise disruption to business operations.

Key lessons learned from the acquisition include the importance of effective communication, the need for a clear integration strategy, and the value of leveraging technology to support the integration process. By addressing these challenges and learning from the experience, Finsure was able to successfully integrate LoanKit’s operations and position itself for future growth and success.

Conclusion

The acquisition of LoanKit by Finsure was a strategic move that significantly enhanced Finsure’s market positioning and capabilities. By integrating LoanKit’s operations, Finsure was able to expand its reach, improve its service offerings, and strengthen its competitive edge in the financial services sector. The acquisition also provided significant benefits to both LoanKit and Finsure, including enhanced support, improved market presence, and access to a broader range of financial products and services. As Finsure continues to grow and evolve, the acquisition of LoanKit remains a key milestone in the company’s journey towards becoming one of Australia’s top brokerages.

Track My Trail Team

The Track My Trail Team develops software to simplify trail book management for mortgage brokers. Their tools provide fast and practical insights to help brokers get the most out of their trail books.