Latitude buys Symple for $ 200 million in loan

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Latitude CEO Ahmed Fakhour said the deal “will accelerate growth plans” and will enable the company “to offer a broader range of products and features in Australia and New Zealand” to its 2.8 million customers.

Symple was co-founded in 2018 by former ANZ bankers. Bob Belan, who was ANZ’s general manager of consumer finance, and its former head of personal finance, Paul Byrne. The National Bank of Australia provides wholesale financing to Symple. Symple’s founders and a 20-member team join Latitude.

Symple Loans co-founders Bob Belan (right) and Paul Brian were former ANZ executives. Eamon Gallagher

The deal shows that Latitude wants to confront not only the large and regional banks that have refused to lend to individuals over the past decade, but also a new group of fintech lenders including SocietyOne, Plenti, Wisr and Harmoney. Latitude’s presentation for ASX on Monday morning shows that Symple’s relative performance is growing faster than SocietyOne, Plenti, and Wisr.

According to analysts, the deal shows that experienced players are keen to buy technologies developed by fintech companies, rather than build them themselves. “What I read here speaks volumes about the value of platforms for building and serving financial technology, and how they are far ahead of the competition,” Shaw said. & Partner Analyst Jonathon Higgins. “Latitude and incumbents look way behind the curve and buy without repeating.”

Symple has created a cloud-based loan pricing platform that allows you to set borrower risk-based pricing with a wider range of interest rates than those offered by same-day banks. Symple interest rates range from 5.75% to 25.99% on loans between $ 5,000 and $ 50,000.

When he spent raising capital in February, Symple has been valued at over $ 100 million. two years after the start of lending. The company had revenues in fiscal 2021 of $ 5.4 million, and new loans were made for $ 41 million. His credit book at the end of June was $ 53 million.

This compares to Latitude, which had $ 562 million in personal loans at the end of December on 516,000 accounts. It increased its market share to 12 percent, up from 9 percent in 2017.

Two-thirds of Latitude is owned by the group that bought the business in 2015, including KKR, Värde Partners and Deutsche Bank.

Latitude has received recommendations from Bank of America and King. & Wood Mallesons.

Latitude was hit by a pandemic with reduced demand and higher costs, and its fiscal 2020 cash profit fell 18 percent to $ 223.9 million. He will report the figures for the six months on 23 August.

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