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- Fintech company Wisr (WZR) has reported a solid quarter of growth, with record figures across a number of key metrics
- Wisr increased its quarterly revenue by 50 per cent, even despite tighter credit policies and reduced risk tolerance through the COVID-19 downturn
- New quarterly loan originations of $42.2 million mark a nine per cent increase on the March quarter, and a 92 per cent increase compared to June 2019
- The company’s robust credit and risk policies have seen the company keep its 90+ day arrears to just 1.44 per cent
- Just $10.8 million worth of loans, or 6.4 per cent of Wisr’s total portfolio loan balance, are on adjusted payment arrangements due to the pandemic downturn
- With strong funding support and plenty of cash in the bank, Wisr is well placed to continue on its current growth trajectory
- Wisr is up two per cent today to 26 cents per share
Fintech company Wisr (WZR) has reported a solid quarter of growth, with record figures across a number of key metrics.
Record growth
Wisr increased its quarterly revenue by 50 per cent, even despite tighter credit policies and reduced risk tolerance through the COVID-19 downturn.
The company attributes the $2.9 million in unaudited operating revenue for the June quarter to the new ‘Wisr Warehouse’ funding model, which has delivered significantly improved unit economics and operating benefits. In just its second quarter of operation, the Warehouse model has seen revenues grow rapidly to sit 188 per cent higher than in the prior corresponding quarter.
The company also reports new quarterly loan originations of $42.2 million — a nine per cent increase on the March quarter, and a 92 per cent increase compared to the June 2019 quarter.
Wisr CEO, Anthony Nantes, says the company is continuing to build from a solid base, even in the face of pandemic challenges.
“Despite maintaining a significantly tighter credit policy in response to COVID-19, as well as taking a prudent approach to loan origination, Wisr has achieved significant loan origination growth and revenue uplift for the quarter,” Anthony said.
“It’s a strong validation of our fintech business model, proprietary technology, and high-performance culture that we can continue to grow and responsibly lend to our customers to help them consolidate, refinance, purchase, and fulfil their needs through the Wisr Ecosystem in these uncertain times,” he added.
“Our unique Wisr Ecosystem strategy provides us with a strong platform to scale and grow, as well as enabling us to really help our customers, and we will continue to do so during these rapidly changing times.”
Wisr CEO, Anthony Nantes
Funded for growth
Earlier in July, the Australian Office of Financial Management approved an initial $30.8 million investment into the Wisr Warehouse through the Structured Finance Support Fund.
The investment sits alongside existing financiers and will support the Wisr Warehouse up to $200 million.
Even as a number of Australians face significant hardship due to the pandemic downturn, only $3.7 million from the Wisr Warehouse, or 4.3 per cent of the Warehouse portfolio balance, resides with customers on adjusted COVID-19-related payment arrangements. Around $10.8 million, or 6.4 per cent of Wisr’s total portfolio loan balance, are on adjusted payment arrangements.
For those customers who recently reached the end of their COVID-19 deferral periods, 75 per cent have caught up or resumed repayments, and financial assistance requests fell to pre-pandemic levels in June. These metrics highlight Wisr’s robust credit and risk policies, and have seen the company keep its 90+ day arrears to just 1.44 per cent.
Wisr’s CEO says he’s proud of the company’s achievements in the face of global pandemic disruptions and difficult economic circumstances.
“Wisr’s rapid response to COVID-19 and the changes implemented to our intelligent credit decisioning process clearly shows our ability to continue to lend prudently, in what is a challenging economic environment,” Anthony said.
“Our purpose-led and agile fintech business model has the company well-positioned for growth through these rapidly changing times, setting Wisr up for a strong revenue growth trajectory over the coming quarters,” he added.
With strong funding support and plenty of cash in the bank, Wisr is well placed to continue on its current growth trajectory.
As consumers, and the economy more broadly, begin to recover from the downturn, Wisr is in a strong position to capitalise on the market’s funding needs and continue in its goal of providing better financial outcomes for borrowers and investors.
Wisr is up two per cent today to 26 cents per share as at 1:40 pm AEST.
