The Resimac Group Ltd (ASX: RMC) share price is on watch this morning after the Aussie mortgage lender announced the acquisition of a 15% stake in an Adelaide-based fintech company.
What did Resimac announce yesterday?
In an after-market ASX announcement, Resimac said that it had acquired a 15% stake in Adelaide-based fintech Positive Group for consideration of $3 million.
Positive Group specialises in asset finance solutions for consumers, mortgage brokers and small businesses.
Resimac management believes that this investment, which is accompanied by an option to acquire a further 10% of the business, will help to rapidly expand Positive Group's technology and web assets.
The group currently serves customers via its B2C business, Positive Lending Solutions, and its B2B tech platform, Nodifi.
Resimac CEO Scott McWilliam said the partnership supports two of Resimac's strategic priorities, which are focusing on the diversification of asset classes, and improving its customer experience using digital technologies.
How has the Resimac share price performed in 2019?
As you would expect for a non-bank mortgage lender, the 2018 Financial Services Royal Commission hammered Resimac's share price in the second half of last year.
The company's share price fell from $0.72 per share in late August 2018 to just $0.44 per share in February when Commissioner Kenneth Hayne released his final report.
One big factor at play was the final report's recommendations for changes in the mortgage broking industry, including the banning of trailing commissions for brokers.
However, the Resimac share price has bounced back to $0.63 per share as at yesterday's close and currently boasts a market cap of $255 million.
The Resimac share price is trading at 10x earnings and paying a dividend yield of 3.0% per annum, which is certainly not the worst offering on the market at the moment.
It's been a different story for investors in Genworth Mortgage Insurance Australia (ASX: GMA), with the company's share price continuing to soar higher in 2019, climbing 31% to start the year.
On a longer-term basis, though, Genworth shares remain 27% lower over a 5-year timeline, while Resimac's share price is down 18.2% over the same period.
