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Lender sees 43% growth in loan value

An ASX-listed neo-lender saw a 43 per cent growth in the value of new loan settlements over the second quarter of the financial year and has announced some personnel changes.

Marketplace lender Wisr has revealed that the total value of personal loan settlements in the second quarter of FY19 was $16.98 million, up by 43 per cent from $11.9 million in the previous quarter (June and August) and more than double the $7.94 million in the previous corresponding quarter.

It marks the fourth consecutive quarter that the marketplace lender recorded loan growth over 40 per cent.

According to the neo-lender, it originated more than $29 million in new loans during H1FY19, up 437 per cent on H1FY18.

Anthony Nantes, chief executive officer of Wisr, said: “It was the biggest six-month increase in loan origination value since the company began operations in 2014 and subsequently listed on the ASX in 2015.

“By offering credit-worthy customers more personalised and innovative financial products backed by cutting-edge technology, we’ve been able to rapidly grow at a time when many other lending incumbents have struggled,” Mr Nantes said.

Wisr’s growth comes in the wake of a recent study conducted by the University of Cambridge, which found that alternative online lenders in Australia upped their lending by 62 per cent last year, up to $3,573 million.

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“By comparison, Wisr recorded 409 per cent year-on-year loan growth last financial year,” the lender reported.

Wisr also noted that there has been significant “customer acquisition through its digital channels” in recent months.

“The addition of new digital services such as WisrCredit significantly bolstered the total number of total Wisr customers, with more than 16,000 users now on the platform,” it continued.

The neo-lender also stated that it “exceeded its targets for arrears and book performances” and attracted more customers to the company.   

“Whilst delivering a 437 per cent increase in loan origination compared to H1FY18, the company decreased marketing spend by 58 per cent (compared to H1FY18) thanks to new services such as WisrCredit, improved customer targeting, and other marketing efficiencies,” Wisr reported.

“The increase in revenue is non-linear with loan growth, due to higher interest revenue from loan assets held on balance sheet in H1FY18 prior to the introduction of wholesale funding in October 2017.”

Wisr is yet to finalise it’s financial information for H1FY19, which is subject to audit review, but the neo-lender said it expects to deliver:

  • A 56 per cent increase on operating revenue from H1FY18, estimated to reach $1.2 million.
  • A 437 per cent increase on loan origination from H1FY18, estimated to reach $29 million
  • Loss before tax of $3.8 million, a 22 per cent increase on loss before tax from H1FY18, estimated to reach $3.8 million. This reflects “higher employment costs as Wisr rolls out its growth strategy and new products”.

Wisr also reported a change in personnel with the resignation of Leanne Ralph of BoardRoom being replaced by Vanessa Chidrawi as company secretary “effective immediately”.

[Related: Wisr books 49% growth in loan settlements]

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