DirectMoney Limited (ASX:DM1), chaired by former SAI Global and Aussie Home Loans chief Stephen Porges, has become the first marketplace lending company to commence trading on the Australian Securities Exchange.
This follows its raising $11.2 million through its initial public offering priced at $0.20.
The company connects borrowers and savers directly with its warehouse model enabling loans to fund immediately rather than the 3-10 days for “classic P2P” lenders.
It is currently targeting sector-leading organisations to participate in loan origination partnerships and as investors in its loan funding vehicles.
DirectMoney’s product uses scalable technology with marginal cost for adding capacity.
There are few domestic competitors in this market with savers and personal loan customers underserviced by traditional providers as banks move out of the personal funding market.
Margins are high with Australian unsecured consumer lending representing 3% of bank assets and 16% of profits.
Significant barriers to entry also exist due to heavy regulation and licensing requirements.
DirectMoney listed on the ASX through a reverse takeover of Basper Limited.
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