Australian Fintech firm Wisr (ASX: WZR) has received a major boost in market confidence after securing $50 million in funding from NAB to increase debt capacity for ethical microfinance facilities.
The 2-year partnership will see NAB provide an initial $50m debt warehouse program with the potential to increase to $200m.
“This is an incredible result for Wisr that recognises our unique business model and approach to this sector,” said Wisr CEO, Andrew Goodwin.
“This funding deal will significantly improve loan unit economics and provide a clear runway for growth and new avenues for Wisr to launch more lending products.
“In NAB, we found a partner that has a great understanding of the fintech industry, and one that leans into what we are trying to achieve through our purpose to deliver smarter, fairer financial outcomes to all Australians.”
Having developed their unique financial wellness eco-system, Wisr offers unsecured personal loans up to $50,000 with interest rates significantly lower than those offered by the big four banks to applicants with a good credit history.
As of 30 June 2019, the Company reported more than $108 million in loans issued with Fixed Interest rates starting from 7.95% pa.
Microfinancing facilities have continued to gain momentum amongst younger Australians with Wisr having reported FY19 revenue to be up 91% to $3.04m with more than 60,000 users and 25,000 downloads of their app.
“This partnership further acknowledges our support for Australian fintech and strongly recognises the purpose led business Wisr is building,” said Cathryn Carver, NAB Executive General Manager, Corporate and Institutional Banking.