iSelect partners with AFG to sell home loans
Comparison site operator iSelect has scrapped its unprofitable home loan operation and entered into a partnership with aggregator Australian Finance Group.In a statement to the Australian Securities Exchange, iSelect said it would focus on "lead delivery", while AFG would focus on "lead fulfilment".iSelect says the two companies will jointly manage the operation, with profits shared equally. iSelect's home loan staff will transfer to AFG.In other news iSelect is consolidating its call centre operations into a single facility at its Melbourne headquarters. It will shut down its centre in Cape Town."The cost and time associated with ensuring consistency of performance and customer experience in the Cape Town customer contact centre has not generated the required return to justify further investment," the company said.In the six months to December, the conversion rate for energy and telco was 4.5 per cent in Cape Town and 11 per cent in Melbourne.In its interim financial report, the company said the number of leads it generated in the December half was down from 2.1 million to 1.9 million, year on year, and the conversion rate was down from 10.4 per cent to 10 per cent.The company said these two changes to its operations completed the strategic review initiatives it flagged in the interim report.Last month the company completed the sale of its Infochoice business the Melbourne's LK Group. iSelect made a loss of A$6.2 million in the December half, compared with a loss of $1.7 million in the previous corresponding period.