AMP Bank buys Nano's home loan book

AMP Bank has acquired Australian fintech Nano’s residential mortgage portfolio as it pushes forward with plans to extend its digital mortgage offerings.

Nano has been the backbone of AMP Bank’s digital retail mortgage offering that aims to offer home loan approvals within minutes.

AMP Bank announced Tuesday it's now acquired Nano’s residential mortgage portfolio, adding an additional $400 million in loans to its residential mortgage book.

Its expected Nano customers will shift over to AMP Bank on March 27 this year on a comparable product and maintain their current interest rate.

Customers will still be able to continue to access your home loan via their existing mobile app.

Offloading the mortgages will let Nano concentrate on being a financial services technology provider.

Nano stated that as a result, it had “made the decision to transition home loans to AMP Bank”.

The bank said the buyout supports its growth ambitions with Nano’s mortgage book comprising of primarily owner occupied, principal and interest loans, with strong credit quality.

AMP Bank group executive Sean O’Malley said because of the existing Nano relationship, “the opportunity to acquire their direct-to-customer loan book aligned well with our strategy.”

“The continued strong growth of AMP Bank has been largely organic, driven by investments in our service, digital capabilities and competitive offers to attract new customers, particularly through the mortgage broker channel,” O’Malley said.

“However, 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.”

AMP Bank’s other mortgage efforts include its partnership with Australian proptech firm Bricklet in efforts to help Australians get on the property ladder sooner.