Direct Money Announces its Latest Partnership

By Henry Thomas on 1st September 2015

P2P/Marketplace Lending

A short update on DirectMoney’s efforts to ramp up deal flow via strategic partnership.

Direct Money Announces its Latest Partnership

The Australian P2P platform Direct Money has partnered with brokers Loan Market and Finsure. These broker networks will noticeably improve distribution channels for Direct Money’s unsecured loans, as they have close to 1,000 and 700 brokers respectively. As Sam White – Loan Market Chairman – points out, the partnership offers broker dealers the opportunity "to diversify their business offering and provide their clients and local community with a greater level of service by offering more than mortgages".

Stephen Porge – Direct Money Executive Chairman – also commented:

These strategic partnerships give Loan Market and Finsure access to our technology-based lending platforms and a dedicated team to assist them and their brokers further service their customers.”

Mr Porge continued:

These strategic partnerships give Loan Market and Finsure access to our technology-based lending platforms and a dedicated team to assist them and their brokers further service their customers.”

This latest announcement comes after DirectMoney floated last month at $0.20 a share, although the price did fall to $0.175 a share by the close. The platform has also secured a retail license – a rare feat in the Australian market.

This is not the first partnership allowing P2P firms to expand operations. Just last month, Lending Club announced that its services could now be accessed via Lending Robot – allowing the platform’s services to be more accessible for retail customers. Earlier, P2P lenders in Jamaica partnered with Sprint Financial Services to provide credit to customers that the company couldn’t self-finance.

As Glenn Hodgeman told AltFi in May, there is a real lack of understanding in the P2P market in Australia. Moves such as this one, by increasing the distribution of the platform’s loans and allowing third parties to broker/promote their products as an alternative to the banks, will not only promote Direct Money, but also promote the service that can be provided by the industry as a whole.

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