Following months of lockdowns which have limited spending opportunities, Australians have used the time to get on top of their finances with neolender Wisr (ASX: WZR) reporting record quarterly revenues, loan originations and customer profiles.
This time at home for many has led to Wisr reporting a 37% increase in operating revenue for the quarter ending 30 September 2020 to $4.1 million compared to their June quarter, and total loan originations of $306.7m which represents a 47% increase on their June quarter.
“This quarter has seen the Company deliver an exceptional set of results. Through the significantly improved unit economics and operational leverage of the Wisr Warehouse, we’ve delivered an outstanding 358% growth in revenue compared to this same period last financial year, combined with record low rates in arrears despite the macroeconomic conditions,” said Wisr CEO, Anthony Nantes.
“The growth in our loan book and revenue is a direct result of consumers demanding better products and services for their personal finance needs, and the differentiated business model we have delivered.
Wisr is in prime position to continue aggressively growing market share with a fairer deal, and a smarter alternative for Australia’s prime credit consumers,”
Having been the first neolender listed on the ASX, Wisr has been at the forefront of financial wellness for its customers which can gain significantly better interest rates on loans in comparison to the major banks.
Like the buy-now-pay-later phenomenon, these alternative means to financing have been very well supported by Australians where neo service providers are able to make greater savings without the overheads of brick-and-mortar branches like those operated by the Big Four banks. Through their range of debt consolidation and lending products, Wisr now has 297,522 registered customer profiles at the end of September.
The increased loan originations for Wisr have been aided by strong management of their ecosystem where the Company saw a decline in 90+ day arrears customers for the quarter to 1.01%, down from the 1.44% Wisr carried in the June quarter.
“Wisr’s commitment to responsible lending and the changes implemented to our intelligent credit decisioning process clearly show our ability to continue to lend prudently, writing prime quality credit and attracting Australia’s best customers, while maintaining industry-leading credit metrics,” said Nantes.
“Our customer-centric approach to lending is delivering a best-in-class 89% recovery rate for COVID-19 hardship customers, as we continue to support and help them improve their financial well-being through the Wisr Ecosystem.”
*Owners of this website are WZR shareholders
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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