Ex-Westpac execs raise $33m for home loan fintech
Two former Westpac executives have unveiled a fintech competitor to established mortgage providers, with a bumper $33 million first funding round.
The start-up, called Verteva, has raised all of the money from New Zealand-based Bolton Equities and is looking to target a similar market to Athena Home Loans, which raised $70 million in October.
It was founded by chief executive Andrew Walker and Chris Lumby, who worked together in executive roles at Westpac. They said they believed an over-reliance on legacy systems, and a lack of appetite for innovation regarding improved customer experience at big four institutions meant there would be a big demand for a smarter option.
One of Verteva’s core propositions is that it will offer lower-rate financing to borrowers with a better risk profile, and do away with volumes of paper forms with a speedy digital application process.
“Too many low-risk mortgage holders are effectively subsidising the banks’ higher-risk customers. That’s a key structural problem with the current model, where low-risk customers are paying interest that doesn’t reflect their risk profile,” Mr Lumby said.
“We’ll offer those customers a better deal, a transparent sharp rate, and without the hassle of the physically delivered paper-based and lengthy mortgage application process of today.”
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