FinTech company Plenti (ASX: PLT) ended FY24, ending March 2024, with improved operating efficiency. In the final quarter, offshore operational support was eliminated and these functions were replaced with advanced technology. Moreover, this improved Plenti’s proprietary technology platform and facilitated a new integration with National Australia Bank (NAB) systems to support the “NAB powered by Plenti” car loan.

Increased levels of automation across business activities supported the improvement in its cost-to-income ratio. It also removed off-shore support operations, which had reached over 40 personnel. All previously off-shored activities are now either automated or brought on-shore to support improved customer experiences. 

Plenti reported a closing loan portfolio of $2.1 billion as of March 31, 2024, marking a 21% increase on FY23. Loan originations reached $1.2 billion, a 6% rise year-on-year, while revenue surged 47% to $211 million. The Company’s net loss rate stood at 1.06%, and Cash NPAT increased by 36% to $6.1 million.

Plenti’s CEO and founder, Daniel Foggo, said, “Plenti’s FY24 was defined by the strategic partnership we entered into with NAB, given the work that has gone into bringing the first product to life, and the growth opportunity it represents. 

“Additionally, growing Cash NPAT to $6.1 million in a year with headwinds across funding costs and industry credit losses is a testament to the strength of our technology-led business model and the talents of our team.”

The strongest growth in Plenti’s loan portfolio was achieved by its renewable energy loan book, up 36% on PCP. Renewable energy loan originations were $160 million, up 31% on PCP, driven by the continued adoption of Plenti’s GreenConnect platform, which is helping to accelerate the uptake of household battery systems. 

Personal loan originations were down 5% on PCP to $418 million, reflecting some tightening of Plenti’s credit appetite through the year. 

In FY24, Plenti prioritised optimising loan margins and credit appetite over loan origination levels while continuing to grow its loan portfolio. Automotive loan originations were $624 million, up 9% on PCP, supported by 50% growth in lending to commercial customers. 

In line with the automotive loan generation, the Company entered a strategic partnership with NAB through which Plenti will provide ‘NAB powered by Plenti’ and Plenti’s own-branded finance solutions to NAB’s large personal banking customer base. Plenti and NAB entered into an equity investment agreement, which provides for NAB to acquire or subscribe for up to 15% of Plenti’s share capital on achievement of milestones.

Foggo concluded, “We enter our new financial year excited about continuing to build market share in each of our core lending verticals, while executing on the significant growth opportunity that our strategic partnership with NAB represents.”

For FY25, ending March 2025, Plenti’s objectives are to drive growth in loan originations and portfolio and profitability. It stays on target to deliver $25 million in cost efficiencies as its loan portfolio scales from $1.5 billion to $3 billion. 

For now, however, Plenti is prioritising the successful rollout of the ‘NAB powered by Plenti’ car loan and the launch of its renewable finance offering to NAB’s large customer base.