With scandals having rocked the banking sector over the past 12 months, Australia’s first neo-lender Wisr (ASX: WZR) has seen major growth in its loan growth, reporting an increase of $31.6 million in loan origination, an increase of 36% compared to the previous quarter and bringing total loan origination to $163.8m.
The milestone continues a remarkable year for Wisr which has doubled its loans over the past 12 months as customers take advantage of its notably lower interest rates where Australians are able to apply for loans up to $50,000 with the convenience of applying solely online.
“This is a fantastic achievement for Wisr as the Company continues to grow its core lending business while redefining what a consumer lending company can be,” said Wisr CEO, Anthony Nance.
“With the announcement last quarter of a new funding facility that approximately triples the average margin to Wisr on each loan written, the Company is at an exciting juncture with an aim to further accelerate growth.”
“2020 is shaping up as another big year for Wisr as we continue to drive our strategy to scale loan originations, deliver category-defining products and partnerships, and ultimately provide Australians with a smarter, fairer alternative when it comes to their personal finances.”
Operating solely online, the growth pattern follows similar industry trends seen from Buy-Now-Pay-Later providers and has attracted interest from traditional banks whose business is being disrupted by these new loan and payment alternatives.
It follows on from the securing of a $50m debt warehouse facility from National Bank of Australia (ASX: NAB) with the partnership agreement announced in October 2019 potentially increasing the debt facility to $200m.
Shares in Wisr have been surging over the past 12 months having traded at its 52-week low of $0.042 in January 2019 to have last closed at $0.235 – a rise of 459% in 12 months.
*Owners of this website are WZR shareholders