Lots of growth for Plenti as he plans a billion dollar loan portfolio for Christmas

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In a year of rapid growth for Plenti, the company is well positioned for another exceptional festive season.

FinTech lender Plenti Group (ASX: PLT) expects an exceptional Christmas celebration, advancing its loan portfolio target of $ 1 billion to this quarter, instead of March 2022.

The company had another record quarter for the three months ending in September (Q2 FY2022). Plenti’s growth engine has been record loan origination across its three lending verticals – automotive, renewable energy and personal.

Its loan origination portfolio increased 140% to $ 256.4 million in the second quarter, compared to the same quarter last year.

Loan origination in September stood at $ 95.5 million, 159% higher than the September 2020 figures. Plenti has seen its loan portfolio grow exponentially, from just $ 385 million in June. 2020 at $ 915 million today.

Plenti CEO Daniel Foggo said Storer As Australia hits vaccination targets, ending costly lockdowns, the company expects further strong growth.

“Despite the lockdowns we grew 18% in the last quarter and as people come out of the lockdown we are optimistic and believe there is going to be even stronger demand that will help our origins,” he said. -he declares.

Plenti’s growth sees its $ 1 billion loan portfolio target advanced to by December of this year, with cash flow forecasts also positive during this period.

“Having such a large loan portfolio shows that we are an integral part of the financial landscape, that we are building a sustainable business,” said Foggo.

“When you are also profitable, from our point of view, these are very important milestones that come together. “

Technology, customer service and structural change

Plenti started lending as a private company in 2014 before being listed on ASX in September 2020.

Foggo attributes the company’s success to his time spent in private ownership, laying a solid foundation while leveraging technology.

“The key here is how quickly you grow and use the technology to operate more efficiently and given the solid foundation we have built, we have been able to get our foot on the ground since our listing and that is why our portfolio of loans grew more than 100% per year. -on the year. he said.

Foggo said that in each of their vertical loans, the large incumbents are losing market share and, in many cases, even exiting the market.

“In the personal loan market, the share of the Big Four banks has declined rapidly in recent years and in a more exaggerated form since the arrival of COVID-19, where people are moving online and looking for value and better. experiences.” he said.

“In the auto loan business, Westpac has just exited its auto business, which is worth over $ 10 billion, while Macquarie has exited its dealer finance business and that leaves a void for companies like Plenti to grow. “

For Foggo, being a major player in a game once dominated by the Big Four is about delivering a better customer experience and leveraging technology.

“Replacing these incumbents is all about technology and delivering simple, seamless customer experiences. Our job is to make it easier for the end borrower, brokers and other referral partners, ”he said.

Foggo said financial clients have become more savvy, are looking for the best deal, and want a faster and easier process.

“When we launched, banks had about 90% of the personal loan market share and it’s now below 60% and we expect that decline to continue. So there are real structural changes underway in Australia that Plenti is perfectly positioned to benefit from, “he said.

Quality loan a priority for Plenti

Plenti Group is focused on lending to blue chip credit customers and in recent years has further improved its credit standing with its shift to secured auto loans and household revolving finance.

An increased use of warehouse finance also reduced the costs of new loan arrangements.

“We securitized $ 300 million in loans in August with about 88% of those loans rated AAA by Moody’s, which shows how strong our lending portfolio credit is,” Foggo said.

“Our average borrower has a very high credit score of 820 and has an income of about $ 100,000 and a stable job.”

He said there were still substantial opportunities for real growth in Plenti’s main lending verticals and that Plenti was “just getting started”.

“The auto finance market represents approximately $ 40 billion in annual loans and the personal loan market represents approximately $ 15 billion in annual loans.

“As we step back in time, our goal is to be Australia’s best lender, which means market leadership in the lending verticals in which we operate, gained by offering better experiences than any other lender. . “

This article was developed in collaboration with Plenti, a Stockhead advertiser at the time of publication.

This article is not advice on financial products. You should consider getting independent advice before making any financial decisions.

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