Alliance Partners

Thursday, March 04, 2021

Fintech Athena disrupting the Legacy Banks core business - home loans!


Gotta luv the combination of how ex NAB execs, Nathan Walsh and Michael Starkey of Home Loan provider, Athena,  have used the powerful combination of outstanding customer service + a smart domain knowledge + strong tech driven operational excellence, to disrupt the banking industry !


“The big legacy banks have been broken by their complexity. It’s not new news, the community has been getting a raw deal for quite some time, [but] the time couldn’t be riper to put a genuine alternative out there.” Says Walsh 


It has settled over $2billion of home loans since it started two years ago - automatically giving existing customers the same low rates as new customers. 


Here is the knockout blow .... 

“Our mission is to acquire new customers and retain existing customers by delivering an exceptional customer experience. We have passed through RBA rate cuts in full to all our customers. using the right technology allowing us to listen, learn and innovate for customers and develop great products.”  Walsh shares with the AFR.


Claire Gillies of Deloitte helped implement the tech around Salesforce by including a blend of interviews, interactive workshops and observing how the technology is used to drive improved insights to build an amazing business  with CX in front and centre of everything it does! 


So, where does Athena get its money from?


"There’s $2.7 trillion in super which is going to increase to $5 trillion and then $10 trillion, or the $17 trillion in bonds at negative interest rates in which high quality mortgages are an attractive asset class.” 


The customer pitch 


“Refinance With Athena and Enjoy Zero Fees So You Can Pay Off Your Home Loan Faster. Learn How Athena Can Accelerate paying off your Home loan! P&I, OO, 60% LVR. Cr Warning. Fee Free Extra Repayments. Equity Release. Direct Debit Repayments. Choose Your Loan Terms.


Apply now. 5 minute application. 100% Online. Award winning. Fast outcomes. 100% Online Application. No Early Repayment Fees. Low Fees, Great Rates. 6 months to 5 years. Borrow from 2k to 30k. Types: Personal Loans, Loan Calculator, Savings Accounts.”


Athena’s People and Investors 


It’s all about the people says Walsh 


“The beautiful thing about great talent is it attracts other great talent,”


Part of the magic formula  was to source the  skills and experience to help the startup through the growth phase.


“A big part of the journey is around the investors and the team we attract to the business,”


The value of relationships with people who have an understanding of the startup journey, who are able to introduce the founders to other connections, who are thought leaders in their fields, and who share the startup’s values is “broader than funding”, Walsh says.


“You are the company you keep.”


The Capital Raising  Journey 

Athena initially raised a Seed round of $3m  in June 2018, followed by a Series A round of $15m from  Macquarie Capital and Square Peg and B funding of $25m  before it launched in February 2019, receiving $250 million in applicationswithin the first three days. 


8 months later, Athena raised a series C $70m round in Oct 19 supported by Square Peg Capital, AirTree Ventures,  Hostplus,  AustralianSuper, Salesforce Ventures and NAB Ventures at a valuation  of $230m, after  it had originated $500m of loans. (They delivered on their promise - their investors trusted Asad supported  them!) 


Today it has written  over $2b of loans - could it now be a unicorn? 


Where to from here? 

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