Mutual banks announce intention to merge
Northern Rivers-based lender Summerland Bank and regional NSW lender Regional Australia Bank have announced their intention to merge, a move that would see them join the wave of consolidation sweeping through the mutual banking space.
Regional Australia Bank has already finalised a merger with Macquarie Credit Union in April this year. The lender is reportedly now moving towards a due diligence process with Summerland Bank to investigate the feasibility of a merger.
Should the merger proceed, the longstanding mutuals would increase their customer base to more than 130,000 with combined assets of $4.8 billion.
The merged organisation would see each entity operate under their respective brands until after the proposed merger date (1 July 2026), with both brands continuing to operate separately post-merger until a decision is made on future branding.
John Williams, the CEO of Summerland Bank, said it would be “business as usual” for brokers using the two banks up until (and likely after) the proposed merger start date.
He told The Adviser: “There’s no change to our broker arrangements; that’s a really strong part of our distribution channel and how we go to market. There’ll be no changes in that channel for the next 18 months as we lead up to the proposed legal merger date of 1 July 2026.”
He said that Regional Australia Bank also had “a strong commitment to the broker channel”, adding it was an area that the two lenders wanted to grow.
“I think together we’d have an expanded range and an enhanced product offering for the broker channel and our direct channel,” he told The Adviser.
David Heine, Regional Australia Bank’s CEO, said: “The team at Summerland Bank provide a shining example of regional community service. Our shared values and ambitions are sharpened through the union of two like-minded mutuals. This merger confirms our intent to empower all regional Australians through our customer-owned banking services.”
REA Group to buy share in Athena Home Loans
The REA Group – which is also the parent company of major brokerage Mortgage Choice – has agreed to acquire a 19.9 per cent interest in non-bank lender Athena Home Loans.
While the group already has a white label product range with the lender (Mortgage Choice Freedom), it is now setting aside up to $62 million for the transaction to buy the stake in the lender (to be funded from the group’s existing cash reserves).
The proposed investment is subject to certain conditions and is expected to be completed by the end of November. Once completed, REA will take two seats on Athena’s board.
Speaking of the deal, REA Group CEO Owen Wilson said: “Growing our national broker network and evolving our digital mortgage offering for the 12 million Australians who now visit realestate.com.au is an important part of our financial services strategy.
“An equity investment builds on the success of our innovative Mortgage Choice Freedom home loan products and forms a strong alliance to support the delivery of our strategy, while also benefiting from Athena’s growing loan portfolio.”
Nathan Walsh, the co-founder and CEO of Athena Home Loans, said: “REA joins a strong list of Athena investors, and we are proud to be working with this industry leader to continue our mission of changing home loans for good for all Australians.”
Other Athena investors include venture capitalists (such as Square Peg, Airtree, and Apex); super funds (Hostplus, AustralianSuper, and Australian Retirement Trust); Macquarie; and Salesforce Ventures.
LMG launches new asset finance marketplace
Aggregation group LMG has announced the launch of Asset Finance Exchange (AFX), a new asset finance marketplace that sends referrals from mortgage brokers and other asset finance professionals to asset finance brokers.
The new platform, headed by LMG head of partnerships for asset finance, Jordan Mutton, has been made available to all Australian-based brokers, with a future white label referral product reportedly slated for a 2025 launch.
Mutton said the chief aim of the AFX is to provide brokers with more choice when it comes to placing asset finance referrals with a referral partner.
“State-based and national referral hubs are available, with the platform showcasing each asset finance brokerage’s specialities – such as business funding, commercial or consumer asset – making it even easier for a referring broker to place their deal,” Mutton said.
“But it’s more than that, regular marketing tools and resources are provided to help unlock more opportunities, adding greater value to brokers and their respective business.
“An in-platform reviews system is also being scoped, a system that’ll provide referring brokers with even greater transparency on the experience other brokers have had with the referral partners.”
Government extends responsible lending exemption for SMEs
The Albanese government has announced the extension of the responsible lending obligation (RLO) exemption for small business finance until 3 October 2026.
This extension will see small businesses with fewer than 100 employees or less than $5 million in revenue able to access loans or credit without being assessed against RLOs, provided they can show there is a genuine business purpose.
The exemption, first brought in as a temporary measure to boost SME finance during the COVID-19 pandemic, was extended in 2021 and due to run out on 3 October 2024.
However, Treasury has said the exemption would be extended once again, finding, “evidence suggests that the exemption is working well”, as it was “beneficial for small businesses, enables streamlined access to credit, and there is no substantive evidence of harm”.
Assistant Treasurer and Minister for Financial Services, Stephen Jones, said: “This means more businesses can access the credit they need, when they need it.
“Small businesses are the beating heart of our economy. We’ll always back small business to provide the goods and services our communities need.
“By extending the program, we’ll gather more data to ensure the changes are safe and there are no adverse effects before considering next steps.”
