Hi,
Re: question around revenue model. We’re also a platform company, which uses our strong relationships with the capital market to ensure we can act on the side of the customer with each transaction. We don’t make our revenue from the amount of interest charged on a loan, so we can always push to provide best in market rates.This means today we don’t rely on the NIM on the loan book to make our revenue, but rather charge a flat fee from our funding sources for the ongoing origination and management of the loan book. This allows us to remain a capital light platform, rather than continually raise capital as we grow our loan book like a traditional lender.My current query isin regards to points of difference you offer compared to the main lenders like CBA and Westpac?
There are several major differences. Firstly, we’re a purpose-led company, with a genuine vision of financial wellness for Australians, and that sets us strongly apart both culturally and from a business model point of view to the Big4. We’re also a platform company, which uses our strong relationshipswith the capital market to ensure we can act on the side of the customer with each transaction. We don’t make our revenue from the amount of interest charged on a loan, so we can always push to provide best in market rates.
Within our core personal loan businessthere's a couple of important attributes that distinguish us from the big banks.
From a borrower perspective a big drawis that our underlying technology platform allows us to offer interest rates lower than the Big 4.
For example, at the moment you'll seeon the comparison table on our mainsite that we're currently offering interest rates up to 5% lower than the Big Four for strongcredit. You can see in our most recent brand campaign launch media release that around a thirdof our personal loan customers are coming across from other financial institutions to take advantageof these loans.
The reason we're able to do this isbecause of our underlying technology platform, which uses our Intelligent Credit Engine to better determine the suitability of applicants, calculate a personalised interest rate based on financial data and then automate a lot of the loan application/maintenancetasks - a lot of which traditional banks do manually.
To give you an appreciation of its levelof sophistication, ICE uses around 110 data points to evaluate an applicant's creditworthiness - compared to a handful by other lenders - and automates more than 80% of the loan application journey.
It's also proved highly useful for other,new products. For example, we can use the platform to let other non-finance businesses lend to their own members/customers like with our Wisr@Work solution or synthesise disparate financial information to create services like WisrCredit, Australia's first creditscore comparison service.
But beyond that, not every customermakes a choice on loan based on rate alone. We think we have the best personal loan product in market, which includes no ongoing monthly fees, no early repayment fees, a best in class customer experience and design/UX, best in class turnaround times for customers,and a range of complimentary products focussed on a customer’s financial wellness.
And what value you assignto that as well as future value?
Indirectly we could point to our continuedincrease in loan origination, revenue growth, etc but we don't provide guidance. However, if you haven't seen them yet, you can always check the most recent RaaSreport.
Where do you see Wisr2, 5, etc, years on?
Here's a linkto an interview with our CEO Anthony Nantes which, in part, talks to where the organisationis heading and our vision for financial fairness. We’ve been clear in our conversations with the market that we aim to be the number one non-bank consumer lender in Australia, built on a business that is known for its commitment to financial wellness.
We don't provide forecasts to the marketbut you can find all of our news and ASX updates on our shareholder's page.You can subscribe to investor updates on that page also.
How does Wisr compareto the photographed loan product from Westpac?
It's a little hard to tell which personalloan product they're showing but I think I can give you a good general overview.
An industry standard is to use the comparisonrate for a $30,000 unsecured loan over a period of five years. On our mainsite you can see the Wisr comparison rate and how that compares to the Big 4 banks (includingWestpac) along with relevant disclaimers.
As I’ve mentioned previously, beyondthe rate, our loans have other features that some others might not which make them more attractive to borrowers.
Again, we're able to do this throughthe platform that Wisr built and refined over the past few years, and our genuine commitment to financial wellness for Australians.
Kind regards,
Mark Lenyszyn
Communications and Investor Relations
Wisr
