Shares for Wisr Ltd [ASX:WZR] are up over 4% today. At time of writing, shares were trading at $0.167 up 23% from Monday this week.
What happened?
Wisr is a fintech company and marketplace lender providing financing for things like vehicles, home renovations and debt consolidation. They are on a mission to bring financial wellness to Australians by providing ‘fairer’ loans.
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How do they aim to do this? Well, according to the company, their advantage over the Big Four banks is that they claim to offer lower interest rates on loans, as you can see below:
Source: Wisr
Yet apart from lending, Wisr has also developed tools to help Australians pay down debt quicker. One of this tools is an app that allows you to round up your digital spare change from everyday transactions and apply it to your debt.
Wisr’s has about 0.22% of the personal loan market yet they are growing fast. Last week the lender hit $150 million in loans. According to the company, it took them 45 months to hit the first $50 million, a shorter eight months to reach $100 million and only six months to reach the $150 million milestone.
Late last month they announced a partnership deal with National Australia Bank Limited [ASX:NAB] where the bank agreed to provide an initial $50 million debt warehouse program with the option to increase this to $200 million.
Since the program has gone live on 18 November, Wisr shares have increased by over 50%.
What could happen next?
There is no question that the banking industry is changing and Wisr is one of the many fintechs looking to challenge it. Wisr has been increasing revenue and market share, but still has to produce any profits.
The interesting twist about Wisr though, is that it is a lender encouraging people to reduce their overall debt. Truth is that while Australia hasn’t seen a recession in decades, debt has boomed too.
Our editor Vern Gowdie thinks Australia’s prosperity is all a ‘mirage’. What could all this debt mean four our economy and wealth?
For more details check out Vern’s latest free report ‘28 Years of Growth: The Aussie Economy’s Miracle Ride’. You can read it here.
Best,
Selva Freigedo