Proprietary tech bolsters Wisr loan offering
IN Partnership with
En route to a $1bn loan book, non-bank consumer lender Wisr unveils a new proprietary data algorithm to supercharge decision automation and deliver a superior customer experience for the broker community and their clients
More
DURING WISR'S H1FY22 update, the purpose-led fintech announced the recent launch of a proprietary data algorithm and credit score platform called the Wisr Score. Utilising advanced data analytics, the Wisr Score will facilitate optimised credit-decisioning, leading to lower interest rates and faster processes for brokers, plus a better risk-adjusted portfolio for Wisr.
Wisr’s long-standing commitment to the broker sector has helped the non-mortgage consumer lender achieve an 84% increase in loan originations on the previous corresponding period for the first half of FY22. Approaching $1bn in loans, Wisr calls on four years of rich customer data to underpin its
Wisr (ASX: WZR) is Australia’s first neo-lender with a commitment to the financial wellness of all Australians through providing a smarter, fairer and wiser collection of financial products and services. Wisr provides a unique financial wellness platform underpinned by consumer finance products, the Wisr App to help Australians pay down debt, and a multiple credit score comparison service, combined with content and other products that use technology to provide better outcomes for borrowers, investors, brokers and everyday Australians.
For more information, visit www.wisr.com.au/brokers
Find out more
“Wisr is 'all in' on helping brokers grow their businesses and serve their customers better, and we’re constantly finding new ways to deliver on this commitment"
Peter Beaumont,
Wisr
The dual use of Wisr Score and Equifax’s credit score allows the company to offer more competitive rates to brokers and their customers. These processes are being rolled out to support both personal loans and secured vehicle loans.
"We’re excited to implement Equifax’s new-generation scoring model to price our loans in conjunction with our internal scoring system, Wisr Score, to strengthen our credit-decisioning process,” says Wisr’s chief commercial officer and head of broker Peter Beaumont.
“I’m even more pleased to see the very positive reaction from our broker partners since we went live in February. As I've said before, Wisr is 'all in' on helping brokers grow their businesses and serve their customers better, and I believe this step helps us deliver on this commitment.”
“Creating our first-generation bespoke credit score has been a huge milestone for Wisr, putting us on par with much bigger financial institutions”
ALEX MAIZY,
Wisr
Lower rates, faster turnaround times
The use of Equifax’s scoring model in combination with the Wisr Score will not only bolster the standard and accuracy of credit risk assessments but supercharge Wisr’s internal lending engine as a whole. These changes will fast-track loan processing times for brokers, resulting in a superior customer experience for their clients.
Wisr’s senior manager of credit risk, Alex Maizy, says creating the first-generation bespoke credit score has been a huge milestone for Wisr: “It's been many months in the making, and we were very excited to release Wisr Score to the market in February.
“We've used groundbreaking techniques and data elements to supplement our rich customer history. It’s the foundation for safely improving our automated assessment process, which will improve our turnaround times for both broker and direct customers.”
Perhaps even more compelling is Wisr’s ability to pass on more attractive rates to a broader set of customers. The lender kicked off the year by lowering its personal loan and secured vehicle loan rates across a simplified set of credit-score bands. Wisr also relaxed its credit policy in some areas, which allowed it to offer a larger pool of customers a more competitive rate with more flexible eligibility criteria than offered by the big banks.
Poised for continued growth
Wisr is well positioned to navigate the evolving interest rate environment despite swirling concerns of cash rate hikes. Thanks to an established hedging agreement, interest rate increases will have no effect on current Wisr customers. Future modelling demonstrates that Wisr is also in a healthy position to absorb future BBSW increases and has multiple cards to play beyond simply passing those increases on to customers.
Wisr’s national team of business development managers continues to grow in line with the expansion of the Wisr broker network. The lender’s custom-built Broker Portal provides all the tools required to process applications efficiently and with a high approval rate, supporting each broker’s business growth with its personal loan and secured vehicle loan products.
Share
Share
News
TV
Updates
Features
Resources
Subscribe
Events
Contact Us
RSS
Conditions of use
Privacy
Terms & Conditions
About us
People
Firms
Key Media
Mortgage Professional America
Which Mortgage
Canadian Mortgage Professional
Mortgage Professional Australia
Copyright © 2022 Key Media Pty Ltd
News
TV
Updates
Features
Resources
Subscribe
Events
Contact Us
Copyright © 2022 Key Media Pty Ltd
News
TV
Updates
Features
Resources
Subscribe
Events
Contact Us
Copyright © 2022 Key Media Pty Ltd
“Creating our first-generation bespoke credit score has been a huge milestone for Wisr, putting us on par with much bigger financial institutions”
“Wisr is 'all in' on helping brokers grow their businesses and serve their customers better, and we’re constantly finding new ways to deliver on this commitment"
“Wisr is 'all in' on helping brokers grow their businesses and serve their customers better, and we’re constantly finding new ways to deliver on this commitment"
“Creating our first-generation bespoke credit score has been a huge milestone for Wisr, putting us on par with much bigger financial institutions”
En route to a $1bn loan book, non-bank consumer lender Wisr unveils a new proprietary data algorithm to supercharge decision automation and deliver a superior customer experience for the broker community and their clients
En route to a $1bn loan book, non-bank consumer lender Wisr unveils a new proprietary data algorithm to supercharge decision automation and deliver a superior customer experience for the broker community and their clients
lending engine. The new bespoke credit score provides a more accurate, holistic view of a customer’s financial standing, allowing Wisr to identify high-quality borrowers while mitigating the risk of bad loans.
Wisr also recently adopted Equifax’s new-generation scoring model to further optimise its credit-decisioning processes. The new scoring model draws on alternative data sources to assess a customer’s creditworthiness, including buy now, pay later (BNPL) services, internet and phone providers, and debt collection agencies. Casting a wider net when collecting repayment and financial history allows lenders like Wisr to match credit products with an individual’s risk level more appropriately.
*Based on maximum dial down below Wisr's lowest Recommended Rate of 5.49% (comparison rate 6.21%). Comparison rate(s) are based on a $30,000 loan fixed for 5 years, with monthly repayments including a $525 loan establishment fee and before inclusion of any Broker Origination Fee.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
As Wisr’s H1FY22 update suggests, the lender is well on track to reach a $1bn loan book within the calendar year. Opportunity abounds in the Australian consumer finance space, and Wisr and its network of broker partners are primed to capitalise. Undoubtedly, the purpose-led business will continue to innovate and improve its offerings as it strives to provide better outcomes for borrowers and brokers alike.
“We've used groundbreaking techniques and data elements to supplement our rich customer history. It’s the foundation for safely improving our automated assessment process, which will improve our turnaround times for both broker and direct customers.”
Perhaps even more compelling is Wisr’s ability to pass on more attractive rates to a broader set of customers. The lender kicked off the year by lowering its personal loan and secured vehicle loan rates across a simplified set of credit-score bands. Wisr also relaxed its credit policy in some areas, which allowed it to offer a larger pool of customers a more competitive rate with more flexible eligibility criteria than offered by the big banks.
loan originations since inception
$879m
Wisr loan originations
Source: WZR H1FY22 results
(comparison rate 6.67% p.a.)
from 5.95% p.a.*
WISR SECURED LOANS
WISR PERSONAL LOANS
(comparison rate 4.20% p.a.)
from 3.49% p.a.*
*Based on maximum dial down below Wisr's lowest Recommended Rate of 5.49% (comparison rate 6.21%). Comparison rate(s) are based on a $30,000 loan fixed for 5 years, with monthly repayments including a $525 loan establishment fee and before inclusion of any Broker Origination Fee.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
ALEX Maizy,
Wisr
ALEx maizy,
Wisr
PETER BEAUMONT,
Wisr