'It's the best time ever to build a consumer lending business'

A trifecta of positive credit reporting, open banking and the royal commission’s aftermath makes now the best time ever to start a consumer lending business, according to chief executive of personal loan outfit Wisr.

“From an investment thesis, you’ve got to say it’s the best time ever to build a consumer lending business in the history of Australia, with these three massive tailwinds to propel you,” Wisr CEO Anthony Nantes said.

He said open banking and positive credit reporting – which will be fully rolled out from July 1 this year – would make more information available to businesses entering the lending space, improving their decision making.

On top of these changes, Mr Nantes believed the big banks were tied up “getting their houses in order” in the aftermath of the financial services royal commission, which had broken the public’s trust in the institutions.

This was an opportunity for new players in the lending space to snap up disenfranchised customers while the big banks were preoccupied fixing their internal cultures.

He said the problem facing burgeoning fintech businesses was not just being able to acquire new customers, but maintaining their patronage beyond a one loan exchange.

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Source: ‘It’s the best time ever to build a consumer lending business’