Broker channel is disrupting the personal loan space

Brokers are becoming the main players in the personal loan space, according to one of the CEO of one of the biggest fintech lenders in the sector.

Daniel Foggo, CEO of Plenti, told Australian Broker that the personal loan market has been radically altered by the broker channel, resulting in record growth at lenders such as his.

“Of all of our originations, the broker channel represented over 60%,” said Foggo. “And it was the channel that grew most strongly over the period.”

“For personal loans, the broker channel is now the most important channel for us. When we originally started as a business, we were predominantly focussed on digital channels, and we have now made the switch because brokers are the largest part of our personal loan originations.”

“Our relationships with brokers are immensely important, particularly with mortgage and auto brokers, but all brokers in general.”

“The part of our business that has grown most strongly is automotive lending, which is up over 300% year on year. Clearly, that’s driven almost entirely by the broker channel.”

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Source: Broker channel is disrupting the personal loan space