- Australian neo-lender Wisr (WZR) has proudly reported its loan originations have returned to pre-COVID-19 levels
- The company attributes this turnaround to its rapid response to COVID-19 conditions and the low exposure to high-risk sectors
- In fact, new loan originations grew from $9.3 million in April to $13.8 million in May — representing a 48 per cent growth
- Wisr provided nearly 400 customers with coronavirus relief packages which included three-month payment deferrals
- While Wisr continues to offer relief, 52 per cent of respondents have said they’ll likely return to a normal payment schedule by the end of their assistant period
- Additionally, the company has extended the launch of its Secured Vehicle finance product from this quarter to the next
- Company shares are up 25.8 per cent and trading for 19.5 cents each
Wisr’s (WZR) loan originations have returned to pre-COVID-19 levels.
The Australian neo-lender company attributes this turnaround to its rapid response to COVID-19 conditions and the low exposure to high-risk sectors. The company took steps to moderate loan originations and even maintained a tighter credit policy from March.
Despite these measures, Wisr experienced tremendous growth.
Significantly, new loan originations grew from $9.3 million in April to $13.8 million in May. This represents a growth of 48 per cent.
“This is an exceptional validation of our fintech business model, proprietary technology, and high-performance culture,” CEO Anthony Nantes said.
“By rapidly responding to COVID-19 economic conditions in Q3FY20, and taking a prudent approach to loan origination in Q4FY20, we have continued to responsibly lend to our customers to help them consolidate, refinance, purchase, and fulfil their needs through the Wisr Ecosystem in these uncertain times,” Anthony added.
COVID-19
From the beginning of March until the end of May, Wisr provided 395 customers with coronavirus relief packages which included three-month payment deferrals.
As of May 31, $10.3 million, or 6.7 per cent, of total portfolio loan balances are on a COVID-19-related payment deferral. This includes $3.4 million from the Wisr Warehouse.
The loan deferral rates compare favourably to industry-wide deferral rates of 10 per cent for residential mortgages and 14 per cent for small-and-medium-sized enterprise business loans.
As of May 31, over 90 overdue payments made up 1.62 per cent of the total portfolio and 0.21 per cent of the Wisr Warehouse. However, Wisr says this is well below internal risk and boundaries.
“Throughout this time, the company has worked closely with our Wisr Warehouse funders who are very supportive of Wisr providing customers with COVID-19 relief, including agreeing for arrears triggers to not be impacted by such relief provision,” he said.
To continue supporting customers, Wisr is still reaching out to customers regarding deferral payment arrangements. So far, 52 per cent of respondents have said they will likely return to a normal payment schedule by the end of the three-month assistance period, or even earlier.
Secured Vehicle launch
Wisr was meant to launch its Secured Vehicle finance product during this quarter. Unfortunately, COVID-19 caused immense disruption to the auto sector in April and May. So, to maximise the success of the launch, Wisr will proceed with the launch in the first quarter of FY21.
Company shares are up 25.8 per cent and trading for 19.5 cents each at 11:12 am AEST.