Fintech Finspo secures $4m to spur growth and buy Melbourne mortgage broker
Fintech start-up Finspo has won new funding commitments of $4 million to help speed up growth and buy established Melbourne-based mortgage broker, Credo.
The new funding will help the digital mortgage broker accelerate growth by expanding its team of mortgage specialists to keep up with customer demand, whilst continuing to invest in its technology platform.
Finspo said the funding round will support the Credo purchase.
With a long history in mortgage broking, Credo is a highly reputable and experienced business with over 1,000 customers which will offer scale benefits to Finspo, and an opportunity to deliver additional value to their loyal customer base,” said Finspo chief executive, Angus Gilfillan.
“We are seeing record levels of demand from customers ready to engage with an expert who is truly on their side. Our loan application volumes are increasing on average by 50 percent each month and are helping more Australians pay off their loans years earlier to achieve true homeownership.”
Launched in 2020, by former banking executives, Finspo will provide a free easy-to-use app that uses a customer’s own data to give them a clearer picture of their banking and provide smart insights to help them save as well as actions on how they can secure better home loan rates.
An ‘always on’ app
Finspo is the only mortgage broker who can provide an ‘always-on’ app experience post settlement, nudging customers when savings opportunities arise by combining customer banking data, industry intel, and advanced algorithms,” said Gilfillan.
“It allows us to speed up the transformation of the home loans experience for Australians - making it easier for them to get a great loan and importantly, pay it off faster.
“It’s like having a team of industry experts always looking out for ways you can save and pay off your home loan faster.
“We have a unique proposition in the market, combining a seamless home loan experience with an always-on app to help you pay it off faster”.
Gilfillan said Reserve bank of Australia data published for May showed that the weighted average interest rates for new home loans funded in the month were 0.48 percent lower than outstanding loans.
“With some simple changes, Australians with an average home loan size of $400,000 could potentially save $50,000+ over the life of their loan.
Plus, they could be paying it off two years and seven months earlier if they maintain their repayments. That's a huge win for homeowners,” said Gilfillan.