Australian credit consumers appear to be returning to financial normality based on fintech company Wisr (ASX: WZR) confirming their loan and repayment figures have returned to pre-coronavirus levels, and are rising rapidly.
The Company has reported 48% growth in their loan originations for the month of May, as Australians seek more competitive interest rates and debt consolidation products than have previously been offered by traditional banks.
“In May, we achieved the milestone of the highest weekly settled loan volume in the Company’s history and have now surpassed pre-COVID-19 origination levels,” said Wisr CEO, Anthony Nantes.
“This is an exceptional validation of our fintech business model, proprietary technology, and high-performance culture
“By rapidly responding to COVID-19 economic conditions in Q3FY20, and taking a prudent approach to loan origination in Q4FY20, we have continued to responsibly lend to our customers to help them consolidate, refinance, purchase, and fulfil their needs through the Wisr Ecosystem in these uncertain times.”
The 48% rise in loan originations represented $13.8 million in May which also saw Wisr set a new record for weekly settled loan volumes of $4m in a single week.
Over the past 12 months, Wisr has shot to prominence in the credit space alongside the rise of neobanks where there is a changing shift in the banking sector’s balance of power. This comes amidst improving transparency in the financial services sector where customers have more product options beyond the traditional banks oligopoly.
In two years, Wisr has grown its total loan book from $51.2m to now have $225.8m in their debt warehouses.
Assisting customers through COVID-19, Wisr offered customers repayment deferrals to assist with hardship which saw 395 requests up to 31 May 2020. In the 16 days since, the Company has only had a further 2 requests and have elected not to report deferral requests back to credit bureaus.
“Throughout this time, the Company has worked closely with our Wisr Warehouse funders who are very supportive of Wisr providing customers with COVID-19 relief, including agreeing for arrears triggers to not be impacted by such relief provision,” said Nantes.
The market responded well to news of business activity returning to normal for Wisr with shares reaching an intraday high of $0.21, a rise of 35% on the previous $0.155 close.
Emerald Financial recently released an Analyst commentary report on the Digital Payments sector which can be accessed here.
*Owners of this website are WZR shareholders.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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