ABBA said it best: Money, money, money, must be funny in a rich man’s world. The problem is, no one’s laughing right now. Tightened wallets due to heightened inflation have left people reimaging their spending habits, bringing consumer lending company Wisr (ASX: WZR) to the fore. 

In the first half of FY23, the Company reported revenue of $43.2 million, up from $26.2 million in H1 FY22. Its new loans were up 13% to $302 million as more people sought financial assistance.

Wisr CEO, Anthony Nantes, said, “We’re the only lender in market with a dual-strategy of ethical lending supported by a financial wellness platform. With the cost of living and inflation hitting household budgets, tools in the suite of products that Wisr offers have the potential to help customers change habits and improve their holistic financial health.”

Clearly, its strategy is working as the Company’s EBTDA has improved by 66%, from being down to $3.8 million in H1 FY22 to only $1.3 million in this half. Besides inflationary pressures, perhaps the end of year spirit to get on top of one’s finances before the new year also bolstered its growth. 

Nantes added, “We launched a new product into our Financial Wellness Platform, a psychology-led money coaching app, “Wisr Today”, which applies research-proven, science-based interventions to help everyday Australians change their money habits. While only a soft launch, demand has been strong, with over 19K downloads since launch at the start of Q2FY23.”

As for its financial wellness, Wisr says it is well capitalised with a cash balance of $58 million, including $24.5 million unrestricted cash and $2.4 million liquid loan assets available for sale. It secured a $25 million debt facility, and its loan book stands at $916 million, up 62% on H1 FY22—it is well within the Company’s risk appetite. 

Moreover, infrastructurally, it’s all set to set up a third warehouse facility. Besides a 12-month contract extension for Wisr Warehouse (WH1) and Wisr Secured Vehicle Warehouse (WH2), it received credit approval from another Big Four bank for a third warehouse facility and credit approval for an intraday overdraft facility.

Some costs have increased due to loan book growth and higher funding costs, but these are being mitigated through ongoing increases in front-book loan origination yield.

Nantes concluded, “Wisr is well prepared for H2FY23, and we’re using the multiple levers available to us to absorb funding cost increases while still earning a healthy net interest margin. Should the predicted RBA cash rate increases continue in 2023, we can absorb any anticipated BBSW changes and navigate macroeconomic conditions with strong and safe fiscal management while focussing on sustainable profitability.”

Since launching in 2018, the Company has written over a billion loans. By having two separate platforms—one for lending and other for financial wellness—it is reaching a broader audience on different stages of their financial journey. And right now, Aussies need all the help they can get.