Nano sells home loan book to AMP Bank as it pivots to tech focus
Australia’s AMP Bank has acquired challenger lender Nano’s residential mortgage portfolio, adding loans worth nearly $281 million (AU$ 400 million) to AMP’s residential mortgage book.
Founded in 2019, Australia-based Nano launched its digital home loans service in mid-2021.
It has now notified its customers that their home loans will be transferred to AMP Bank on 27 March 2023. Nano says it plans to wind down its home loan services and focus on providing technology to financial services companies.
Nano’s customers will be transferred to a comparable product and maintain the same interest rate, AMP Bank says.
AMP Bank adds the acquisition of the “high-credit quality” mortgage book supports its growth, with Nano’s mortgage book consisting primarily of owner occupied, principal and interest loans, with “strong” credit quality.
“Given our existing partnership with Nano to deliver one of the first true end-to-end digital mortgages, and the detailed understanding of their business, the opportunity to acquire their direct to customer loan book aligned well with our strategy,” says Sean O’Malley, AMP Bank group executive.
“In line with our objective to grow the bank and increase our direct to customer channel, we will continue to consider acquisition opportunities where they make strategic sense and maintain the high quality of our loan book,” O’Malley adds.