Harmoney completes $115m debt securitisation warehouse facility

Harmoney completes $115m debt securitisation warehouse facility

Harmoney, an established Australia and New Zealand-based consumer finance fintech, has secured its first debt warehousing facility in Australia from one of the big four banks to cover the company’s unsecured personal lending book with a two-year availability period. The A$115 million facility is designed to enhance the company’s capabilities to offer online personal lending on its own balance sheet in the Australian market.

The company has recently also scaled up to NZ$140million the existing debt securitisation warehouse from the Bank of New Zealand, a subsidiary of the National Australia Bank (NAB) Group of companies, which supports the significant growth of Harmoney’s online personal lending capabilities to consumers in New Zealand.

Harmoney is planning to further diversify its own balance sheet funding in 2020 through new securitisation warehouses in Australia and New Zealand.

Harmoney CEO David Stevens says targeted growth in Australia is a key priority for the company in 2020 and the new facility further supports the strategy to strengthen the company’s technology infrastructure and grow its offering in the personal loans sector.

“The new debt warehousing facility, which is also a new big four banking relationship Harmoney has secured, is a great endorsement of the quality of our technology infrastructure, our team and both our credit and compliance capabilities. It follows on from a landmark year in 2019 as we successfully completed a A$23million series C capital raise and launched a A$20million corporate debt facility.

“As well, we marked a significant milestone by the end of last year after having written over A$1.5billion in loans across both Australia and New Zealand which is a testament to our ability to create fair, risk-based products that give people greater choice and opportunity. This growth in our loan book is a result of our extensive work on building a strong customer base in Australia around risk-based loan structure and fast, 100% online application process.

“In addition, we have recently launched Harmoney Top Up which allows existing customers to re-apply for loans with the potential for lower interest rates and larger loan amounts. This model has proven to be increasingly attractive for the Australian consumers who are now pleasingly returning to us for repeat business. Those repeat customers will be part of the success factors as we grow our business in Australia.”