E-Loan 'ahead of game'

By RICHARD BRADDELL

E-Loan, the online mortgage broker half-owned by listed eVentures, says it is performing ahead of budget, in contrast to its Australian namesake, which has just fired 20 of its 25 staff.

E-Loan New Zealand's chief executive, Bruce Gordon, declined to go into details, citing the imminent report to the Stock Exchange of eVenture's interim profit.

But he emphasised that E-Loan was an entirely separate franchise from the Australian operation, although it might at some stage consider taking over the Australian or other franchises.

Mr Gordon said the number of New Zealand loan applications had far exceeded expectations and some had already been approved and settled in the first two months.

"We are behind in terms of cost outlay to date, we are ahead in terms of revenues in the door," he said. "We've established very good online partnering deals which help position us as the number-one online lender."

In contrast to E-Loan Australia, which had been the third or fourth online lender to enter the market, E-Loan New Zealand had a first-mover advantage.

Another difference was that it had spent "seriously below" the $A10 million reported as establishment and marketing costs for the Australian company.

Since launching in June, E-Loan New Zealand has increased the number of lenders represented from 18 to 24 and now offers more than 300 different loan products.

Mr Gordon said the "Kiwi way of doing things" had resulted in a tight management team. Eight of the 16 local staff were loan consultants and the rest management and technical personnel.

It was continuing to develop its retail activities, in contrast to the Australian business, which, from this week, is wholesale-only.

E-Loan New Zealand is half-owned by E-Loan of the United States, which has racked up sizeable losses building its market presence.