Tuesday, 8 May 2018

Wall Street banking giant Goldman Sachs backs digital mortgage broker Trussle

The Wall Street banking giant Goldman Sachs has agreed to buy a stake in Trussle, a UK-based online mortgage broker, underlining the growing appetite of established lenders to invest in financial technology start-ups.
Sky News can reveal that Goldman's Principal Strategic Investments (PSI) division is participating in a near-£14m fundraising by Trussle, which was founded less than three years ago.

Details of the new investment are expected to be announced on Wednesday, according to people close to the company.

Alongside Goldman Sachs, other new backers of the digital mortgage broker are said to include Propel, an investor with links to the Spanish financial services giant BBVA, which also owns a big stake in Atom Bank, the British online-only lender.

The fundraising comes at a time of profound change in the UK mortgage sector as established players attempt to fend off more nimble start-up rivals, which have pledged to revolutionise the customer experience by making the process of securing a home-loan faster and cheaper.

Trussle was set up by Ishaan Malhi, a City analyst who decided to launch the company after becoming frustrated with his own mortgage application process.

"Every year, millions of current and aspiring home owners are subject to the same unnecessary costs, delays, and frustration that I experienced first-hand when trying to get a mortgage," Mr Malhi said.

"These industry shortcomings are causing people's dreams of owning a home to slip further away."

The involvement of Goldman's PSI unit in Trussle's latest fundraising is notable because of the Wall Street firm's now-frequent presence as a strategic backer of fast-growing fintech companies.

SKY     News.

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