NRMA to offer home loans funded by Bendigo Bank
NRMA Insurance will start offering home loans to its 3 million customers in a distribution deal that will disturb major banks given it involves mortgages being sold directly to customers of highly trusted non-bank brands.
NRMA Home Loans will be funded by Bendigo and Adelaide Bank, under a deal that will funnel new customers to Bendigo to help it grow its balance sheet against the big four lenders.
NRMA Home Loans will be offered to its insurance customers, in the latest example of ‘white labelled’ banking products.
NRMA, which is owned by IAG, will use the digital mortgage origination platform built by Tic:Toc to provide the loans. IAG Firemark Ventures, the insurer’s corporate VC fund, first invested in Tic:Toc in 2018 and provided funding to three subsequent capital raisings.
NRMA Insurance follows Qantas offering Bendigo mortgages through Tic:Toc to its 14 million frequent flyers. NRMA Insurance sees mortgages as a way to retain and deepen relationships with its customers. “We are taking a really strong brand in the insurance space, and seeing if we can stretch it a little bit further,” said NRMA Insurance chief executive Julie Batch.
“We are a brand that has lots of distribution capability. Our intention is to market this organically to our existing customer base. We have a direct relationship with customers, and this is about strengthening that.”
The standard variable interest rate for owner-occupier loans through NRMA Insurance is 5.83 per cent. Customers are eligible for a 0.10 per cent reduction in the rate. With the discount, pricing is similar to Commonwealth Bank’s direct-to-customer digital home loan, Unloan.
Bendigo will pay a small amount to NRMA for sourcing the loans.
NRMA Insurance CEO Julie Batch: “We
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