Marketplace lender DirectMoney has announced it is about to list on the Australian Stock Exchange as it looks to disrupt the personal lending space.
The group’s chief operations officer, Peter Beaumont, told Mortgage Business that DirectMoney’s listing is “imminent”, and will provide the lender with additional capital to support growth.
Australian stockbroking firm Bell Potter was responsible for DirectMoney’s book build, and Mr Beaumont said the majority of the money raised from the listing will be used to lend to customers.
Founded in 2007, DirectMoney began lending in October last year, after the GFC resulted in the company being placed on hold until activity ramped up again in 2012-13.
Mr Beaumont said the group classifies itself as a marketplace lender rather than a peer-to-peer lender, and holds an Australian Credit Licence and Australian Financial Services Licence.
“Unlike P2P lenders, DirectMoney has access to various funding sources to support our lending. We can employ our own capital or sell loans to the DirectMoney Personal Loan Fund or DirectMoney Marketplace Limited,” he said.
Mr Beaumont said the group targets Australian residents over 18 who require unsecured personal loans between $5,000 and $35,000, with varied interest rates subject to borrowers' credit standing.
“Our rates are typically several percentage points below those offered by the banks,” he said.
Mr Beaumont also revealed that DirectMoney is in the process of establishing partnerships with brokers and broker groups.
“We expect to provide brokers with the best possible personal loan product and grow our market share accordingly,” he said.
P2P lender ThinCats Australia announced last month that it was weighing up listing on the ASX as it pursues growth opportunities.