Kogan angling to catch some lending action
Australia's fastest-growing online retailer, Kogan.com, is preparing to widen its push into financial services with plans to market mortgages and other lending products to its burgeoning customer base.Industry sources told Banking Day on Wednesday that the Melbourne-based company would be launching a range of lending products under a new proprietary brand later this year.According to the sources, Kogan has held talks with at least one major bank with a view to tying a distribution partnership for mortgages, personal loans and credit cards.While the identity of Kogan's banking partner is not known, the popular retailer has already sought approval from regulators to register domain names and trademarks for a business that will trade under a new brand - "Catch Loans".Official records maintained by Australia's domain name registry, Ausregistry, show that Kogan recently registered the www.catchloans.com.au domain.A search for this website in internet browsers currently transports online shoppers to Kogan's main retail site.The new brand might be controversial given that it is similar to the trading name of another expanding online retailer - the Catch Group.The Catch Group markets more than 13,000 products through its flagship website, www.catch.com.au, and is also believed to be considering options to market financial services to consumers who use its site.Neither Kogan nor the Catch Group responded to requests for information from Banking Day on Wednesday afternoon.Kogan entered the financial services market in July last year when it sealed a three year agreement to market rebadged general insurance policies manufactured by Hollard Insurance.Hollard is the underwriter and issuer of Kogan-branded policies for home and contents, travel, car and landlord insurance.Those products are currently marketed through the Kogan flagship site and a dedicated online platform, known as www.koganinsurance.com.au.However, the advent of Catch Loans appears to be steering Kogan towards a multi-branding strategy in financial services, with the company recently moving also to register trademarks and domain names for "Catch Insurance".Kogan's interest in retailing financial services has sharpened this year, with the announcement in January that it would soon begin selling life and funeral insurance products in partnership with Greenstone Financial Services.Kogan executive director David Shafer has signalled that other protection products would be offered to customers "over time".The breakneck roll out of insurance offerings accelerated last month, with Kogan founder and CEO Ruslan Kogan launching a health insurance product through an alliance with Medibank subsidiary, ahm.At its interim profit announcement on 22 February, Kogan said it had grown its active customer base by 40.5 per cent to 1.16 million during the 12 months to the end of December.According to disclosure documents filed to the ASX, the company derives A$315 in average annual revenue per active customer.