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Pioneer Credit has bought fintech mortgage broking disrupter Switchmyloan

Patrons grab at money fired into the crowd at Prive Las Vegas inside the Planet Hollywood Resort in Las Vegas. Ethan Miller/Getty Images for Prive

ASX-listed Pioneer Credit has acquired mortgage broking innovator switchmyloan.com.au for an undisclosed sum.

Switch, founded in 2013, is a disrupter of traditional broking and has agreements with 19 financiers, including all of Australia’s major banks.

Pioneer Credit says the acquisition is an important part of the company’s expansion into the mortgage broking sector, following the launch last month of a full-service broking offering.

“Pioneer Credit’s mortgage broking service is all about providing value based options to our customers,” says managing director Keith John.

“With its online model, Switch offers consumers lower fees, while our full-service mortgage broking capability is available for those who prefer to tap into the know-how of an expert.”

Switch assesses a customer’s needs for a home loan and then matches them to three different lenders with appropriate but competing offers before connecting the consumer through to the bank.

“The online market place is becoming extremely popular with consumers looking for ease and speed of transaction,” says John. “Gaining a presence in this space would have taken Pioneer significant time, effort and capital to develop from the ground up.”

Pioneer Credit, which began life as a financial services provider to people money problems, posted a 152% increase in profit to $3.3 million for the latest half year on a 36% rise in revenue to $21.1 million.

Its shares last traded $1.79.

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