Powered by MOMENTUM MEDIA
subscribe to our newsletter

Japanese crowdfunder partners with marketplace lender

Crowd Bank, a Japanese crowdfunding platform, has entered into the Australian market after becoming an investor in marketplace lender Zagga.

Under the exclusive funding deal, Crowd Bank – which has approximately 34,000 investors and $260 million funds under management – will provide an initial investment of up to $50 million in Zagga’s platform. 

Zagga is an online marketplace lender that uses a custom-built algorithm to match wholesale/sophisticated investors with creditworthy borrowers for loans (between $1 million-$10 million) secured by a registered, first mortgage over real property.

It marks the third international market the Japanese fund has entered into, following previous investments in the US and Hong Kong.  

Speaking of the investment, Crowd Bank president Kaneda Hajime commented: “Australia is a marvelously attractive environment for investors driven by political stability, government efficiency and a sound fiscal balance sheet, and we intend to invest aggressively in this market.

Advertisement
Advertisement

“We believe the most important element of success, in terms of finding a good investment destination, is to collaborate with a strong local partner that we can trust.  

“In Zagga, we are partnering with a well-established loan manager with a proven investment track record, good corporate governance, advanced risk management and a focus on transparency.” 

Zagga has said the investment will help support the marketplace lender’s growth ambitions for 2021. 

Peter Clare, the chairman and co-founder of Zagga, noted that it had seen strong performance in 2020, growing 42 per cent on the prior year to originate more than $162 million in loans (both direct and via its broker portal).  

He added that the platform is aiming to grow total originations by more than 33 per cent in 2021, targeting an active book in excess of $250 million. 

PROMOTED CONTENT


“There is huge opportunity for continued growth in the Australian alternative lending market, which is being recognised by global investors like Crowd Bank. 

“We’re very pleased to be embarking on the next phase of our growth journey with Crowd Bank, and continuing to support Australian businesses with flexible funding to help them realise their own growth objectives.” 

The CEO of Zagga, Alan Greenstein, added that the alternative investment platform has been seeing particular growth from small businesses over 2020, as “more businesses turned to alternative finance due to banks effectively closing their doors to many of their existing clients, including small businesses”.

“A large majority of our new borrower clients are those who historically have had longstanding relationships with traditional lenders, but who are increasingly seeking the flexibility, speed and transparency offered by alternative lenders, like Zagga,” he concluded. 

[Related: Online lender launches new broker portal]

Japanese crowdfunder partners with marketplace lender
Japanese crowdfunder partners with marketplace lender
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Revolut has recruited from 86 400 and Citi for two senior additions to its local team, including a new head of lending. ...

The RBA has stated that APRA succeeded in curtailing a drop in home lending standards by implementing macro-prudential policies between 2014...

Analysis of cash rate changes has found property price growth is less dependent on low interest rates than commonly believed, according to a...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.