Wisr: Growth in consumer loans flows through to Q1 revenue boost
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The result marked a 37 per cent increase from the June quarter, and a gain of 358 per cent from the 2019 September quarter.
Shares in the company jumped last week after it said issuance of new consumer loans rose to $61.9 million in Q1 FY21, up from $42.2m in the June quarter.
After hitting a post-COVID high in August of 26c, shares in WZR rose by around seven per cent in morning trade to 22.5c.
Wisr offers consumer loans of between $5k and $50k, with fixed repayment terms over three or five-year periods.
The platform also includes an app where customers can pool and allocate savings towards faster loan repayments.
Speaking with Stockhead, Wisr CEO Anthony Nantes said the growth in revenue and consumer loans was partly a by-product of changing consumer patterns in the wake of COVID-19.
“I think there’s no doubt that over the last six months, Australian consumers have gotten more conscious about their finances and there’s lots of data to support that,” he said.
“In that context, we’re the only player in the space that offers loans at rates lower than a bank, with no fees and an app to help people pay (their loan) down faster.”
“So I think that kind of offering, in an environment where people more financially conscious, has definitely helped with customers coming towards us.”
Nantes also flagged the tailwinds behind fintech platforms in general, amid the accelerated growth of digital adoption and ecommerce.
Looking at the broader consumer loans market, he said Wisr still has the opportunity to significantly expand its market share.
“The last couple of quarters we’ve seen for the first time what happens when we get this engine going, but we really feel like it’s still in first gear,” Nantes said.
“There’s a big market out there. We’re taking less than one per cent of that market share at the moment.”
“So we feel like there’s a huge opportunity sitting in front of us over the coming quarters, which puts us in a good position to really grow the company.”
Elsewhere in Wisr’s 4C filing, the company said loans 90+ days in arrears fell to 1.01pc of the total balance. That was down from 1.44pc in June and comfortably within the boundary of internal credit risk parameters, Wisr said.
The company reported a loan book balance of $132.8m, and committed funding of $164.3m from a total warehouse debt facility of $200m.
Wisr’s warehouse funding model is supported by larger traditional lenders, including NAB.