Powered by MOMENTUM MEDIA
subscribe to our newsletter

YBR outlines next phase strategy

Yellow Brick Road has outlined its growth strategy following the acquisition of two mortgage businesses earlier in the year.

YBR intends to build scale and purchasing power through the recent purchase of Vow Financial and Resi Mortgage Corporation to become a leader in the non-bank space.

The acquisitions have seen the group’s loan book grow from $2.7 billion to $24.9 billion. In addition, YBR now has over 1,000 brokers in the marketplace.

In an investor presentation this week the group said its initial focus will be in mortgages, with a wealth management model to be launched over the coming months.

“The business has been investing in Yellow Brick Road for the last three years,” YBR chief executive Matt Lawler said.

Advertisement
Advertisement

“Now what you are starting to see is that our losses have peaked and that is starting to track back towards profitability,” he said.

As the group continues to grow its branch network and increases the productivity of its existing stores, it expects to post its first profit at the end of the financial year.

Mr Lawler said the work that has been done at YBR can now be leveraged with the addition of Vow and Resi.

“A lot of the investment that we have done with Yellow Brick Road, particularly around white-labelled mortgage products, can now be leveraged into Vow and Resi,” he said.

“In particular the wealth management model that we have is probably the key.

PROMOTED CONTENT


“We have all the infrastructure and all the necessary resources for people to move into wealth management.”

YBR’s strategy is to leverage its distribution network to provide customers with a range of financial products across home loans, insurance and financial advice.

Mr Lawler believes that broking is a ‘sub-segment’ of financial planning; part of the YBR model involves mentoring brokers to become financial planners.

However, Mortgage Choice chief executive Michael Russell recently rejected this idea and warned brokers not to fall victim to being a ‘jack of all trades’.

 

YBR outlines next phase strategy
mortgagebusiness

Latest News

Politicians have traded blows while debating the repeal of responsible lending laws in the lower house, ahead of today’s Senate hearings. ...

The non-bank lender reported an 88 per cent rise in profit and a 14 per cent increase in its loan book over 1H21, despite a drop in the volu...

There was a 26 per cent rise in loans originated through the broker channel at the non-major bank as at 31 December 2020, according to its r...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: BOQ’s acquisition of ME Bank

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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