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Cuscal targets mortgage managers

April, 2007

Mortgage managers have been targeted as part of plans by wholesale and transactional banking services provider, Cuscal, to broaden its customer base.

AFG and Challenger Mortgage Management (formerly Interstar Wholesale Finance) were the first to be involved in Cuscal's move to service the mortgage management sector.

"Mortgage managers have been very successful in the Australian market through the convenience of their distribution strategies and attractive pricing," said Phillip Hurley, general manager - customers, at Cuscal.
"The inclusion of banking services such as cards, payments and internet banking enhance their loan products. This development supports both an acquisition and retention strategy," said Hurley.

AFG's recently launched securitisation program used Cuscal to "add the bells and whistles" to its securitised products, said Paul O'Donnell, general manager for mortgage management and securitisation at the aggregator group.

Cuscal enables AFG to add Visa debit cards, internet banking, cheque books, and direct debit and credit facilities to its securitised products. "It allows us to have products palatable to the end user," said O'Donnell.
"It means we can get a banking platform with transactional capabilities."
One of the products Cuscal has targeted for the mortgage management market is the branding of cards of the originator of the loans. "This enhances the card offering for the mortgage manager as it significantly enhances the retention strategies of the mortgage originator," said Hurley.

Cuscal announced it will also be implementing products for Columbus Capital and a number of their mortgage managers through its alliance with Perpetual Corporate Trust.

The company is also looking to consolidate its recent growth. A dip in half-yearly profit did not sway expectations of meeting its end of financial year target. A 5% fall in operating profit during the first half of the 2007 financial year was put down to non-recurring restructuring costs.

"Restructuring the business and re-negotiating long-term contracts on behalf of our existing customers has required that Cuscal spend money to build a platform for future growth," said John Gilbert, Cuscal CEO.

Further information:

Phil Hurley
General Manager Customer & Corporate Development
Cuscal Limited
t: 02 8299-9316