Firstfolio changes name to eChoice

Shareholders of the mortgage company Firstfolio met on Friday to approve a name change to eChoice Ltd, a move that reflects the dominance of its eChoice broking and aggregation division in the overall business mix.

In a statement issued on Friday, the company said its constitution would be amended to reflect the change and its Australian Securities Exchange code would change to ECO.

eChoice has been a state of flux over the past few years, after an ill-timed acquisition spree left the company with a heavy debt load just as a downturn in the mortgage market cut into revenue.

Last year the company was able to resolve its debt problems and, under new chief executive Peter Andronicos, set about restructuring the business.

Its many acquisitions have been integrated into two divisions: eChoice, a broking and aggregation business; and Folio, a lender.

Several years ago the lending business dominated, with Firstfolio offering its own branded loans, funded by a range of wholesale facilities, as well as white label services.

However, eChoice is now a much bigger part of the business, accounting for 94.9 per cent of loan settlements during the six months to December.

Andronicos said that aligning the company name with its main business unit would give the company better value for its marketing dollars, eliminate any confusion in the market and make it easier for investors to see what the company does.

Andronicos has made a couple of executive hires this year to maintain momentum with the transformation of the business. Kon Shizas has joined as general manager products and services, and Paul Liccione as general manager sales and distribution. Both are ex-Resi Mortgage Corp executives.

Where once Firstfolio management looked for acquisition opportunities, Shizas said the focus now was on partnerships.

Shizas said: "Niches are our future. We are looking for partners to help us build the business in segments like first-home buyers and Asian investors."

eChoice has recently signed a partnership agreement with Blue Wealth Property, a property investment advisory group that will offer eChoice customer research, valuation services and investment opportunities.

Andronicos said: "These partnerships are designed to allow us to take our customers on the journey."

Andronicos has revived eChoice's broker training program to provide a stream of qualified advisers to the company's own brokerage business or to brokers using its aggregation service.

His strategy is to keep the business as flexible as possible, offering brokers a range of services and commission structures that can be varied according to their needs. Brokers can, for example, opt to take qualified leads from eChoice.

eChoice also offers brokers a post-settlement service, where it contacts customers to get feedback. And it will contact old customers on behalf of the brokers.

Andronicos: "We worked with a broker who had 2000 names on his database. He had not spoken to any of them for four years. We called them and got some new appointments for the broker."

eChoice is settling around A$300 million of loans a month. It is working with brokers to help with sales of leasing and insurance products.

Wealth management is on the agenda but there is no rush. "We do want to wealth but not overnight. We are working through the most suitable model for the company," Liccione said.