NEWCASTLE Permanent has joined forces with Athena Home Loans, with the Hunter-founded building society supplying the Sydney-based "mortgage disruptor" an initial $300 million in home loan funding.
The Perm, in its 117th year of operations as one of Australia's largest mutual organisations with $11 billion in assets, and the comparatively new online lender Athena announced the strategic partnership in the national home loan market on Wednesday.
Under the agreement, Newcastle Permanent will supply Athena with an initial $300 million in home loan funding with the potential for future transactions and a broader partnership.
A statement from the Perm said it was able to seize the opportunity when it presented itself due to the organisation's "strong liquidity and capital reserves built over a number of years".
The strategic partnership was "part of Newcastle Permanent's strategy to actively pursue partnership opportunities in emerging sectors of the finance industry where they align to the organisation's core business of helping customers with their banking needs."
Newcastle Permanent CEO Bernadette Inglis said the partnership with Athena - launched in early 2019 by two former NAB executives and with investment backers including Macquarie Bank and Hostplus - was a part of the continued evolution of the Perm.
"This partnership enables Newcastle Permanent to build on its high quality home loan portfolio with complementary high quality and diversified assets," Ms Inglis said. "This diversified mortgage acquisition strategy will underpin the value we are able to offer our customers and support long-term organisational resilience.
Ms Inglis said the Perm's board saw future opportunities for Newcastle Permanent to form partnerships and capitalise on ties between the fintech and mutual sectors.
Athena co-founder and chief operating officer Michael Starkey said developing innovative solutions was core to the fintech's strategy.
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