‘Neo-lender’ Wisr teams up with Bendigo Bank in $25m deal
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“Neo-lender” Wisr is teaming up with Bendigo and Adelaide Bank in a $25 million wholesale funding agreement.
A “neo-lender” is a variation on “neo-bank” — a term that refers to a digital-only finance provider that typically focuses on mobile-first services in partnership with a traditional bank.
The deal provides Wisr (ASX:WZR) with a facility to fund existing and future loans and increase its consumer loan book capacity.
“Our ability to work with some of the incumbents in the industry is just validation of what we are doing,” chief Anthony Nantes told Stockhead.
“The agreement with Bendigo and Adelaide Bank (ASX:BEN) further diversifies our funding mix and enhances the ability to support our immediate and long-term growth trajectory as opportunities to expand our partnership emerge.”
Mr Nantes hinted at product innovations arriving in coming quarters – off the back of a record quarter for the fintech.
Last week Wisr reported a 42 per cent increase in its personal loan origination for the quarter – the best since it began as DirectMoney in 2014.
“The trajectory we are on has been established and the numbers that we had last week are evidence of what we can achieve,” Mr Nantes said.
Wisr burned $237,000 for the March quarter leaving $2.1 million in the kitty. It plans to spend $1.7 million this quarter,
Wisr — valued at about $13 million — provides an innovative platform to facilitate loans between funder investors and consumer borrowers.
The deal with Bendigo and Adelaide Bank — Australia’s fifth-largest retail bank — would improve opportunity for revenue generation and operational performance.
Shares in the company were trading at 2.9c on Monday morning – down from highs of 4.2c earlier in the year at the announcement of a strategic investment from investment house Alceon.