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Wisr (ASX:WZR) - CEO, Anthony Nantes
CEO, Anthony Nantes
Source: Fintech Business
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  • Wisr (WZR) has surpassed $200 million loan originations over the March 2020 quarter
  • The digital lender ended the quarter in a strong financial position with over $35 million in cash
  • Wisr’s loan book is also seeing ongoing growth, with an average credit score of 706 – the average Australian’s score is around 600
  • Despite the COVID-19 crisis, Wisr has continued to grow by making good lending decisions and reviewing its credit policies
  • It has also implemented a risk approach for highly impacted sectors, ensuring it has a very low balance sheet exposure
  • Wisr is up 7.41 per cent and shares are trading for 14.5 cents each

Wisr (WZR) has surpassed $200 million loan originations over the March 2020 quarter.

The digital lending specialist also noted this has been achieved while employees are working from home, with no disruptions to usual operations.

“Surpassing $200 million in loan originations while the entire company is working from home, is not only a strong validation of our Fintech business model and proprietary technology but also our high-performance culture,” CEO Anthony Nantes said.

Essentially, Wisr help Australians apply smarter and have better outcomes from their loans. It boasts interest rates up to 5 per cent lower than Australia’s four big banks for strong credit.

Wisr maintains a strong financial position and is very well capitalised, having roughly $35.6 million in cash at the end of the quarter. This is in addition to the $3.5 million commitment to the NAB loan warehouse facility and loans held on balance sheet available for sale.

The company’s loan book is also experiencing ongoing growth, with an average credit score of 706 (Australian average credit score is around 600 ). This validates Wisr’s competitive loan book and customer base.

Credit and risk during COVID-19

Despite the COVID-19 crisis, Wisr has continued to grow and exceed its goal expectations.

To maintain this and ensure lending decisions are well-made, Wisr has reviewed its credit policy and origination parameters. This includes reducing exposure to pockets of industry-specific risk, verification of employment status and income stability, and portfolio management strategies for customers who may encounter difficulties.

The lending company has also implemented a risk-based approach to account for high-risk industries and employees which are likely to be impacted by COVID-19. These include hospitality, tourism, airlines, arts, entertainment, sports, recreation, events, and retail.

This has helped to ensure Wisr has a very low balance sheet exposure to these high-risk sectors, with $6.7 million at the end of the quarter.

Only $0.3 million of the balance sheet exposure is within a high risk industry segment and has a higher risk credit score, which is less than 539.

“Wisr will take a prudent approach to loan origination in the fourth quarter of FY20, while continuing to responsibly lend to our customers to help them consolidate, refinance, purchase, and fulfil their needs through the Wisr Financial Wellness Ecosystem in these uncertain times,” Anthony stated.

Wisr is up 7.41 per cent and shares are trading for 14.5 cents each at 11:59 am AEST.

WZR by the numbers
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