Rubik’s $35 million acquisition of Stargate’s technology division will support the convergence of financial services, claims Stargate's Brett Spencer.
The formation of a mortgage division at Rubik positions the platform provider to help mortgage brokers diversify their business, Rubik Financial managing director of mortgages Brett Spencer told Mortgage Business.
“Rubik has a banking division, wealth division and now a mortgage division,” Mr Spencer said.
“We now span all three major sectors of the financial services industry, which uniquely positions us to provide much more services to those third party markets, particularly with the view towards diversification that is being promoted among mortgage brokers,” he said.
“The platform that Rubik now has in wealth and mortgages gives brokers that opportunity to diversify their business and cross sell into insurance or financial planning.”
Mr Spencer will continue to run the Stargate business while holding an executive position at Rubik.
While providing greater access to other areas of financial services, the acquisition and subsequent formation of Rubik’s mortgage arm will see the company strengthen its relationships with lenders through the addition of new services.
“The opportunity is now there with Rubik and Stargate to form closer relationships with the banks and provide greater breadth of services,” Mr Spencer said.
“At the end of the day, Rubik is working with 110 of 171 ADIs in Australia already, so there are certainly great opportunities when all those ADIs have their biggest revenue stream through mortgages, and now with a Rubik mortgage division there is certainly much greater scope to be able to provide greater services to our existing customers,” he said.
“That’s where the synergy in the relationship is and hence why Rubik purchased the business.”