About Now Finance
Now Finance is a specialist provider of personal loans to consumers looking for convenient, value-for-money and hassle-free personal-finance solutions that enable them to achieve their goals and maintain financial control. Its target market is middle-market consumers of personal loans for amounts of A$5,000-100,000, who are currently financed by the major banks or who perceive banks to be the most credible source of personal finance.
Now Finance has built and rapidly scaled its market-leading personal lending solutions based on four key tenets:
• Trusted partnerships.
• Cutting-edge technologies and automation.
• Pricing, risk and product innovation.
• Real-time data processing and machine learning.
A state-of-the-art technology platform and differentiated product offering allow Now Finance seamlessly to originate a diversified portfolio of high-quality consumer loans. These capabilities underpin Now Finance’s white-label platform and its partnership with Pepper Money.
|SIZE OF LOAN BOOK||A$400M|
|MAKEUP OF LOAN BOOK||
CONSUMER LENDING: 100%
|GEOGRAPHIC DISTRIBUTION OF LOAN BOOK||AUSTRALIA: 100%|
|OUTSTANDING DEBT ISSUANCE||WAREHOUSE FACILITIES, NOW TRUST ABS PROGRAMME|
Data is the digital currency for any fintech and is a cornerstone of the Now Finance business. The company’s investment in this area delivers significant support in customer acquisition, risk management and pricing, and has been key to its ability to scale quickly and efficiently.
Now Finance’s cloud-first infrastructure strategy provides the business with significant capacity, high availability and maximum flexibility.
Ownership and capital structure
Now Finance is an Australian-owned, founder-led fintech based in Melbourne, with offices in Sydney, Brisbane and Perth. It has developed a stronghold in the personal-loan market as a leading alternative to the major banks.
The Now Finance loan book typically follows industry and seasonal trends, but at significantly superior levels. Delinquencies continue to track well below the industry in the 30+ days past due and 90+ days past due categories.
The effect of COVID-19 through calendar year 2020, together with proactive, customer-focused early collections, have contributed to Now Finance’s strong results, which has seen the company significantly outperform the market.
A balance-sheet lender since inception, Now Finance has developed an institutional-grade funding platform with a diverse range of bank and institutional investors, as well as an established, publicly rated ABS programme.
Now Finance executed its inaugural Now Trust 20191 ABS transaction in September 2019 with a follow-up transaction, Now Trust 2021-1, executed in July 2021. The success of both demonstrates the strong and growing appetite of institutions to invest in a strategically diversified loans portfolio, seasoned and originated within a well-developed and proven risk-management framework.
Now Finance uses a rigorous credit-assessment and risk framework, underpinned by a proprietary multi-factor pricing and decision engine. This capability enables Now Finance to originate a prime-quality portfolio and consistently deliver market-beating credit-quality measures.
Now Finance’s strong risk-management capability and strategy provide a reliable risk profile for investors and partners alike.
Now Finance has defended a strong net-interest margin and maintained receivable credit quality in a competitive market. The business has been profitable since December 2018 and will continue to scale and diversify through its operating leverage, risk culture and strong cost management.
FOR FURTHER INFORMATION PLEASE CONTACT:
+61 499 300 697
nonbank Yearbook 2022
KangaNews's seventh annual guide to the business and funding trends in Australia's nonbank financial-institution sector.