Broker News

ME offloads business banking portfolio

ME has announced the sale of its business banking portfolio, including commercial and asset finance, to RedZed Lending Solutions.

ME says the sale will allow it to focus on growing its residential home loan portfolio.

The business banking portfolio accounts for 2% of ME’s total lending portfolio and is valued at $240 million.

RedZed was founded in 2006 and is an Australian owned non-bank lender specialising in solutions for the self-employed, operating exclusively in the Australian mortgage market and offering a range of specialist lending products.

“This is an exciting day for RedZed as this acquisition is perfectly aligned with our strategy to provide quality solutions to our self-employed borrowers,” says RedZed’s managing director, Evan Dwyer.

ME said business banking customers will have their finance contracts and associated security transferred to RedZed over the coming months and all current lending contracts will remain unchanged.

ME also confirmed the sale does not include ME’s existing business term deposits and business online savings accounts, which remain with ME.

“RedZed is committed to expanding its lending portfolio and enhancing the business banking services it provides customers,” a statement from ME said.

Published on: Monday, December 05, 2016

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