In a statement to the market, Challenger said it had acquired MyLifeMyFinance Limited (MLMF), the savings and loans business of the MyLifeMyMoney Superannuation Fund, also known as Catholic Super.
The acquisition would see Challenger granted an authorised deposit-taking institution licence with APRA, allowing it to expand its offerings to the retiree market in term deposits.
“Challenger will initially focus on expanding MLMF’s term deposit offering by replicating the investment strategy used to support Challenger’s term annuity business,” the group said.
“Under Challenger ownership, it will be able to provide term deposit customers compelling value across a range of tenors.
“The acquisition will provide Challenger with access to a wider range of customers through multiple distribution channels, including direct and via intermediated channels.”
Challenger managing director and chief executive Richard Howes said adding a banking capability to the company’s suite of products would “further broaden the ways in which we provide financial security for retirement”.
“Term deposits represent a significant asset class for Australia retirees and entering the market provides an opportunity to play a greater role supporting the retirement incomes of our customers, while also attracting a new cohort of customers,” Mr Howes said.
“Authorised deposit taking institutions had had great success in attracting government guaranteed retail deposits. We see a significant opportunity to leverage our leading retirement income position and capability to manufacture guaranteed returns for our customers.”
The group said the acquisition was subject to approval by APRA and the Treasurer, and was expected to settle in late March.
