Aldermore, the specialist bank, has completed the integration of MotoNovo Finance following the bank’s acquisition by FirstRand.
The combined businesses are expected to offer a range of strategic benefits and synergies, with a total of 750,000 customers between them.
FirstRand, the largest financial services group in Africa, has owned MotoNovo since 2006 and bought Aldermore last year.
Phillip Monks (pictured), CEO, Aldermore, said: “This is a very exciting step in Aldermore’s journey as we join forces with MotoNovo Finance, one of the largest lenders in motor finance.
“This move will create real benefits for our customers and shareholders. With a broader customer base, we can harness the combined strength and energy of our two like-minded organisations to achieve great things for all our customers.”
He added that the day-to-day running of the businesses will continue as usual, and the focus will remain on providing a seamless service to customers.
MotoNovo Finance CEO Mark Standish said: “Joining the recently acquired Aldermore family brings us the strategic benefits of greater sustainability through a lower cost of funds and greater diversification.
“MotoNovo will now begin to write new business from Aldermore’s balance sheet; a move that will put us in a far stronger competitive position.”
Aldermore was founded in 2009 by a former Barclays executive as one of the challenger banks that emerged after the financial crisis to fill a gap in small business lending.
Johan Burger, FirstRand CEO, said at the time of the acquisition: “This transaction is the latest step in FirstRand’s strategy of protecting and building shareholder value by achieving a more diversified revenue profile and we believe it will provide the platform to fulfil our growth objectives in the UK.
“It will allow FirstRand to allocate more financial resources to our operations in Africa, whilst diversifying earnings in the UK.”
