Millennials + gen Z = a huge market
Shaw and Partners senior analyst Danny Younis reckons non-bank lenders have a big advantage with younger consumers.
“Millennials and generation Z are less likely to use cash these days. They’re less likely to use credit cards these days,” he said in the podcast.
“And they’re very distrustful of the big four banks.”
This factor gives Wizr a massive total addressable market (TAM) lending just in this country.
“The market is huge. Right now the TAM is $100 billion in Australia,” said Younis.
“And a big chunk of that is credit cards… Credit card debt in Australia is running at about $40 billion. That is a huge issue.”
Non-bank sees loan originations rise 17% qoq
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A non-bank lender has reported that its loan originations grew 17 per cent in the quarter ending 31 March 2021, up 17 per cent on the previous quarter and 151 per cent on the same period last year.
Personal lender Wisr has announced that it saw $97.8 million in loan originations for the quarter ending 31 March 2021 (Q3FY21), a 17 per cent increase on Q2FY21 and a 151 per cent increase on Q3FY20 (during peak COVID-19).
The lender, which provides unsecured loans of up to $63,000, noted that it has now recorded 19 consecutive quarters of growth, with its total loan originations now at $488.3 million.
Wisr reports strong prime lending growth
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Sarah Buckley
Sarah Buckley
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The personal lender closed the year with another quarter of strong growth, particularly from prime borrowers, new figures show.
Wisr has announced that it continued to see strong growth in new loan originations in the final three months of 2020.
According to the lender’s figures for the three months ending 31 December 2020, new loan originations grew by $83.8 million over the quarter – taking its total loan originations to $390.5 million since inception.
The new origination figures are up 165 per cent on the same period last year and represent a 35 per cent increase on the previous quarter.
Why the Wisr (ASX:WZR) share price popped 5% this morning
Mitchell Lawler | January 11, 2021 11:04am |
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Wisr Ltd(ASX: WZR) share price is up by 5.26% this morning, following a release from the company regarding its second quarter FY21 performance.
At the time of writing, the Wisr share price is sitting at 20 cents per share. The non-bank lender’s shares have fallen 14.89% in the last 12 months.
For comparison, other lending companies such as
Resimac Group Ltd(ASX: RMC) have returned 18.8% and 43.43%, respectively.
Wisr’s second quarter FY21 highlights
In today’s release to the ASX, Wisr informed the market of its continued record quarterly growth with prime loan customers. The company’s loan originations experienced a growth of $83.8 million quarter on quarter, an increase of 35%. This also represents a significant 165% increase in loan originations from the second quarter of FY20.