Neo-lender Wisr (ASX: WZR) has reported a 36% increase in loan growth in the second quarter of the current financial year, on the same day the company’s newly-appointed chief risk and data officer Joanna Edwards officially took up her new role.
In a statement to the market, Wisr said it had accrued $31.6 million of new loans in the December quarter last year with total originations reaching $163.8 million by the end of 2019.
Furthermore, Wisr stated that $54.9 million in new loans in the back six months of last year represented a 90% increase on a year-on-year basis and a 35% increase to the previous quarter.
“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,” Wisr’s chief executive officer Anthony Nantes said.
Mr Nantes explained that following the creation of a new funding facility less than three months ago, Wisr is on course to experience a tripling of margins on each loan it writes, with the company currently at “an exciting juncture with an aim to further accelerate growth”.
Mr Nantes declared that 2020 would see Wisr looking to upscale loan originations, deliver category-defining products and partnerships and “provide Australians with a smarter, fairer alternative when it comes to their personal finances”.
Growing loan book
Wisr provides unsecured personal loans in Australia and supplements the practice of short-term lending with what it calls a “unique financial wellness eco-system” underpinned by consumer finance products and a proprietary smartphone app.
Customers use the company to pay down existing debts with Wisr offering an array of online-powered personalised deals on loans of $5,000-50,000.
The company provides loans for a variety of applications including vehicle finance, home improvements, travel and one of its most popular products, debt consolidation.
On its website, Wisr offers interest rates from 7.95% per annum with its own rate of 8.78% comparing favourably to ANZ’s 13.32%, Commonwealth Bank of Australia’s (CBA) 13.86%, Westpac’s 14.14% and NAB’s 13.56%.
Offers of significantly lower interest rates have attracted borrowers with online channels helping to accelerate the spread of unsecured, personal and short-term loans in recent times.
Late last year, Wisr appointed former CBA general manager Joanne Edwards, for a newly created chief risk and data officer position, with Ms Edwards beginning her new role today.
According to Wisr, Ms Edwards will focus on credit risk optimisation and data analytics of Wisr’s rapidly scaling loan book and developing its financial wellness ecosystem concept, as well as, extending Wisr’s competitive advantage with industry changes such as Open Banking and Comprehensive Credit Reporting (CCR).
Today’s news helped Wisr shares to tick up by 2.1% up to $0.24.