Deposit Power Acquires Deposit Assure, Dominating the Australian Deposit Bond Market
In an exciting development in the Australian financial market, Deposit Power, a leading provider of deposit bonds and part of the Credeq Group, has announced its acquisition of Deposit Assure. This move consolidates two major players in the deposit bond market, positioning Deposit Power as the dominant force in the sector.
A Strategic Merger for Enhanced Services
With a history of issuing deposit bonds for over three decades, Deposit Power is a trusted name among brokers, real estate agents, solicitors, conveyancers, and vendors in Australia. This strategic acquisition of Deposit Assure is expected to add to the scale and expertise of Deposit Power, enabling them to develop their systems and processes further. The goal is to make the issuance of deposit bonds faster, simpler, and more reliable, as stated in the company’s announcement.
Ryan Dinsdale, CEO of Deposit Power
Building Confidence in the Property Market
Ryan Dinsdale, CEO of Deposit Power, expressed his optimism regarding the acquisition, highlighting its strategic importance for the company and the broader market. The merger of Deposit Power and Deposit Assure is expected to strengthen the company’s support for brokers and their clients, providing certainty at exchange and confidence through settlement.
Given the tight property market, Dinsdale emphasized the need for a dependable alternative to cash. He expressed his belief that, as a larger and stronger entity, Deposit Power can invest in raising awareness about more flexible alternatives to cash deposits, thus relieving some of the market pressure.
Deposit Assure: A Key Player in the Deposit Bond Market
Deposit Assure has been operating in Australia for over 11 years and has significantly contributed to the growth of the deposit bond market at a national level. Known for its innovative digital deposit bonds and concierge-led service model, Deposit Assure has built strong relationships across brokers, conveyancers, and real estate professionals. Its integration with Deposit Power is expected to enhance the latter’s market position and service capabilities.
A Positive Move for All Stakeholders
Etienne Rizzo, CEO of Deposit Assure, hailed the transaction as a positive outcome for customers, partners, and employees alike. Aligning with Deposit Power and HDI Global, a highly-rated global insurer, reinforces the company’s foundation. Furthermore, it introduces a policy framework that better reflects today’s market demands.
Rizzo emphasized the shared focus on growth through innovation between Deposit Power and Deposit Assure, which ensures continuity while positioning the business to deliver even stronger outcomes without compromising the high service standards and relationships Deposit Assure is known for.
Market Dominance of Deposit Power
Following this merger, Deposit Power’s market share is expected to approach 90%, making it the predominant player in this segment. Deposit Bond Australia, underwritten by QBE, remains as a competitor in the market.
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