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DirectMoney Ltd posts record lending quarter as fin-tech spreads wings

DirectMoney Ltd posts record lending quarter as fin-tech spreads wings

Australian fin-tech DirectMoney (ASX:DM1), has posted a record 48% growth in new loans during the quarter ended 31 March 2016, relative to the previous quarter.

The only ASX listed fin-tech lender brings together borrowers and lenders through a web-based platform to offer unsecured loans.

During the quarter ended 31 March 2016, $4.71 million of loans to 219 borrowers were issued, including $1.92 million in March 2016, which was a record month.

DirectMoney has written $15.65 million of loans to 810 borrowers with an average interest rate of 12.7% since lending began in October 2014.

The company raises additional funds for lending by selling loans to third parties. A total of $5 million of loans were sold to Macquarie Bank at face value in February, from which DirectMoney earns a monthly loan servicing fee.

Impressively, there have been no recorded losses on any of the 431 loans written in FY 2016 with only 4 loans having late payments exceeding 30 days.

The company, which follows a strict credit criteria, signed an agreement in March with the credit reporting bureau, Dun & Bradstreet, bringing Directmoney into the Australian Comprehensive Credit Reporting (CCR) community.

DirectMoney’s loan origination growth continues to be driven by partnerships with broker aggregators and direct online channel marketing.

The company said it has over 450 accredited brokers and agreements in place with major finance and mortgage broker aggregators representing 5,000 individual brokers.

 

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