Neo-lender Wisr’s loan origination growth
Neo-lender Wisr Limited (ASX: WZR) is pleased to report on its strengthening personal loan lending portfolio and credit quality position, as at 31 March 2018. The Company’s origination of personal loans grew by 42% in FY18 Q3 when compared with the previous quarter. This was the Company’s largest quarter in loan originations since Wisr, formerly known as DirectMoney, began in 2014. This continues the Company’s significant loan origination growth in FY 18, with loan originations growing quarter-on-quarter by 20% (FY18 Q1) and 79% (FY18 Q2). In the period since Wisr announced a significant restructure in 2016 – which included a new Chairman, new CEO, key executives and business direction – […]
‘Laggard’ lenders to be left behind: Moody’s
Banks that fail to digitally transform are at risk of losing their competitive edge to the rising number of online players entering the market, according to Moody’s. In its Fintech – Global: Bank of the Future report, Moody’s warned that banks that fail to adopt strategies that strengthen their digital platforms may struggle to maintain their current market position as customers increasingly explore finance alternatives from online lending platforms. The report cited data from an analysis of the US mortgage market which revealed that 53 per cent of borrowers used online platforms to obtain home loans in 2017. The figures also revealed that younger borrowers are most likely to obtain […]
P2P lender’s growth due to consumer ‘rebellion’
Peer-to-peer lender RateSetter has attributed its recent rapid growth to consumers actively rebelling against the big banks. The company has just passed the milestones of 10,000 investors and $250million in loans and says it is thanks to the Royal Commission’s scrutiny of the four major lenders. Research amongst RateSetter’s investor base has found that long-term customers of the big four, particularly amongst generation X, are diverting millions of dollars away from their savings accounts and term deposits into longer term P2P investing. The amount invested by these investors has increased by 14% over the last 12 months, with average investment now sitting at close to $40,000. CEO of RateSetter Australia, […]
Brokers split on fintech competition
More than half of mortgage brokers are not concerned about increased competition from online broking platforms, according to a recent survey. Despite this, almost a third of respondents said they were looking to improve the digital capabilities of their businesses. The survey was completed by MyState Bank’s national broker network. More than 47% of brokers responded saying that in the face of increased competition from online broking platforms, they would remain focused on their existing business models, which they considered to be competitive. A further 13% said they believed the threat of greater competition from online platforms was not significant to them. However, not all of the broking community agreed […]
Non-bank business lenders growing in popularity amongst SMEs
There is no doubt the big banks remain major players in the SME lending market however, there has been a steady rise in the number of non-bank lenders offering fast and flexible lending options in this space. They are able to move much faster than the traditional banker with their unique ‘fintech’ approach, giving small business owners across Australia alternative options when seeking business funding. Going hand-in-hand with this preference for more flexible finance solutions amongst SMEs is the demand for unsecured lending options. Business owners are demonstrating they understand the need to pay a small premium in return for fast, flexible finance options which do not require them to […]
Crowd2Fund prepares to cross fintech bridge to Australia
Leading P2P lending platform Crowd2Fund are launching an Australian office by becoming one the first UK-based companies to utilise the new ‘FinTech Bridge’ between the UK and Australia. The Enhanced Cooperation Agreement, signed in March 2018 between the FCA and the Australian Securities and Investments Commission (ASIC), will make it easier for regulated FinTech companies in both Australia and the UK to start trading in either market. Key benefits of the Bridge include the speeding up of company licensing between the two territories, as well as more strategic collaboration between the FSA and ASIC in order to grow the respective markets of each country. Michael Ward, the Director General for […]
Fintech adoption speeds up in Australia
Australia is growing faster than most of the global markets and is now outplacing the US in terms of fintech adoption, says Noah Breslow, the chief executive of US online SME lending company OnDeck Capital, which has delivered more than $US8 billion in loans to 80,000 small businesses globally. He told the third AltFi Australasia Summit in Sydney on Monday that Australia is now the second-largest alternative finance market in the Asia-Pacific region. “We are looking at an industry that did $10 million of annual volume – these are numbers from KPMG in 2013, and in 2016 that had grown to $220 million.” Breslow said according to OnDeck estimates, “based […]
Open banking will drive better customer deals and responsible lending outcomes for mortgages and credit cards
The first phase of Australia’s open banking regime should be designed to assist Australians get a better deal on mortgages and credit cards.
