Financial health is both subjective and objective: regardless of how much a person earns, habits and behavioural change are critical in creating lasting change to their relationships with money. Wisr has reinvented the consumer credit experience by looking at the bigger picture. Through products, tools and resources, Wisr gives customers access to smarter credit and helps customers get out of debt faster. It also helps customers make more astute decisions with their money, improving their financial decision-making and overall financial health through the proprietary Wisr Financial Wellness Platform (FWP).

The FWP allows users to get a personalised experience based on their next major “money moment”, see their liabilities and balances, check and monitor their credit scores, round up their money to pay down debt or save, receive personalised product offers and pricing, and access smarter personal and secured car loans.

Combined with the prime quality of customers Wisr attracts (781 average credit score of the total loan book as at 30 June 2023), revenue growth, improving loan unit economics, and core business profitability, the company has a small but rapidly growing market share with significant room to build a company of real size and scale in the years ahead. 

Wisr has two National Australia Bank (NAB)-backed loan­ funding facilities: Wisr Warehouse (WH1), with commitments of A$450 million, and Wisr Secured Vehicle Warehouse (WH2), with commitments of A$250 million.

To date, Wisr has raised A$675 million through three ABS transactions. All were arranged by NAB and achieved a triple-A Moody’s Investors Service rating for the top tranches. In May 2021, A$225 million was raised via Wisr Freedom Trust 2021-1 (inaugural personal loans). A second personal loan ABS was issued in June 2022, with A$250 million raised via Wisr Freedom Trust 2022-1. In February 2023, the inaugural secured vehicle loan ABS was issued, raising A$200 million via Wisr Independence Trust 2023-1.

Wisr’s FY23 has seen its operating revenue rise 55% on the previous corresponding period to A$92 million (FY22: A$59 million) backed by a prime loan book of A$931 million heading to A$1 billion as at 30 June 2023.

As at 30 June 2023, after 12 months of NIM compression, Wisr is now entering a period of NIM expansion through lifting front book yield in response to the higher cash rate, with the current NIM run rate circa 5%. Combined with a clear capital management strategy, delivering three operating cash flow positive quarters in Q2-Q4 of FY23, Wisr is in a strong position to safeguard against the current macroeconomic climate and deliver a profitable company.

When the conditions are deemed appropriate, the business has measures in place to pivot quickly and recommence scaling. However, in the short term, maintenance of balance sheet strength, NIM expansion through lifting front book yield and profitability are the key areas of focus as Wisr continues to build a company of meaningful size and scale.

Florian Ruff 
Head of Funding and Treasury
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www.wisr.com.au