Wisr Ltd. · ASX:WZR
Wisr — Investor Presentation (July 2018)
30 slides from Wisr's investor presentation, Jul 24, 2018
Slide 1: Australia's first neo-lender
For personal use only Australia’s first neo-lender
Slide 2: Disclaimer
Disclaimer For personal use only No investment advice or offer of shares This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose in any shares of Wisr, in any jurisdiction. Risks and assumptions This presentation contains statements (includin
Slide 3: Peer-to-peer (v1.0) into neo-lender (v2.0)
For personal use only Peer-to-peer (v1.0) into neo-lender (v2.0) We’ve evolved from our heritage as a peer-to-peer lender, allowing us to do more through better technology for more Australians
Slide 4: Wisr Personal Loans and the Wisr model
Wisr Personal Loans: $5k-$50K, 3-5 year term, risk based pricing (approx. 8%-18%), prime customers For personal use only Fairer, smarter, Wisr attracts and screens Investor lenders wiser way to borrowers, facilitates the earn solid returns. borrow, and gain transaction and then services greater fina
Slide 5: Thousands of Australians have already chosen a Wisr way to borrow money
For personal use only Thousands of Australians have already chosen a Wisr Young Affluent Trustworthy way to borrow The average age of a Wisr The median income for The recent average credit customer is 25-35 years- Wisr borrowers is $86,000. score of Wisr Customers is money. old. 711, which is consid
Slide 6: What our customers are using Wisr for
For personal use only What our Debt Investment 24.68% 22.63% customers are Historic average 34.89% • Personal loan consolidation Historic average 20.90% • Shares using Wisr for. • • Credit card bills Tax bills • • Gap finance Business investment Vehicles Lifestyle Other 19.11% 8.91% 24.68% Historic
Slide 7: Company milestones 2014-2018
Feb 2018 ‘Aug 2016 Feb 2017 Mar 2014 May 2018 Jul 2018 Technology Investment in lending platform Rights issue $5.7 million Alceon takes a strategic stake in company. Launch (before costs) development. Company $25m funding Record grawth launched and agreement with in loan begins lending ) Bendigo Ban
Slide 8: Our growth story
$9,000 $45,000 Our growth story… For personal use only $7,941 $8,000 $40,000 $39,255 Since refocusing the $7,000 $35,000 $31,313 business in early FY2017 $6,000 $30,000 we have seen: $26,536 $5,000 $23,232 $4,777 $25,000 • New company focus, $19,667 $21,154 $18,590 management and $4,000 $17,871 $3,3
Slide 9: Strengthening our economics
Strengthening our economics For personal use only Our evolution from a peer-to-peer lender in FY17 (with only 2 discreet revenue generating lines) has seen us evolve our business model to find more ways to generate revenue across our business. Revenue Generating Business Lines 12* 14 12 10 8 7 6 2 4
Slide 10: The Wisr Tech Platform
The Wisr Tech Platform For personal use only Unique Wisr Proprietary Tech Platform designed to manage the full end-to-end customer journey • Over 80% of customers receive a fully automated outcome • Developed and perfected over last 3-5 years of lending • Invested, designed and built to scale to $1B
Slide 11: The Opportunity
For personal use only The Opportunity
Slide 12: Addressable market in Australia
$49.5b For personal use only In countries such as the PL addressable United States, online market in Australia fintech lenders like Wisr have already captured a $110b Consumer finance 32% share of personal lending. Locally our industry is doubling in size every year. market Australian Bureau of Stat
Slide 13: Average household addressable personal debt
And the average Australian For personal use only household has $17,750 of addressable personal debt, led by personal loans … 1 $7,750 3 $4,750 Personal loans Credit card debt 2 $5,250 4 $2,750 Student loans Other AMP NAPSTEM report 2016
Slide 14: A better alternative to major lenders and a fairer deal than credit cards
We offer a better … and a fairer deal alternative to the major than credit card For personal use only lenders … companies. According to ASIC, in almost half of all cases Wisr 9.36% Australians are worse off when choosing a credit card balance transfer. ANZ 11.87% p.a. • 15.7% increased total debt by
Slide 15: Credit and Operations
For personal use only Operations Credit and
Slide 16: Faster, better credit decisions through our tech
Faster, better credit decisions through our tech For personal use only Bank level credit Instant verification Highly automated Targeting prime Wisr allows for near instant Over 80% automation across the customers, with borrower verification. platform for customers. responsible lending.
Slide 17: Using customer transaction data for better outcomes
Using customer transaction data for better outcomes For personal use only • Keeps us ahead of regulatory changes • Reinforces our commitment to ethical, responsible lending Automated business • Automatically verify income and liabilities decision engine • Find undisclosed liabilities • Faster verifi
Slide 18: Loan Side Investors
For personal use only Loan Side Investors
Slide 19: Strong returns, low volatility
Strong returns, low volatility For personal use only Consumer Lending: 20 years of equities-like yields but less volatility. Cumulative returns Annual returns 350 30% 300 20% 10% 250 0% 200 -10% 150 -20% 100 -30% 50 -40% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 20: Vast pools of capital
Vast pools of capital For personal use only Attractive Australia has more pension assets in cash than any other country. asset class 25% Australia 20% Delivered a 7.5% net annual US$253bn Cash Assets as % of GDP Netherlands US$5bn Canada return for more than three 15% US$32bn UK years. This provides
Slide 21: A growing and diversified investor base
A growing and diversified investor base For personal use only Wisr is supported by some of Australia’s largest 2018 and most respected financial institutions including asset managers and banks – attractive economics, scalability, resiliency. 2017 Funding strategy: - Increasing access to large pools
Slide 22: A more balanced lending portfolio
A more balanced lending portfolio For personal use only 41 28 Unlike some of our other competitors, we have a 16 16 18 broad range of borrowers – 14 11 10 9 both by loan purpose and 6 8 7 6 8 by loan amount. We have 0 2 also seen growth in higher value loans during the most recent half. Wisr (H2 201
Slide 23: The Wisr Roadmap
For personal use only The Wisr Roadmap
Slide 24: Regulatory change creates opportunity
Regulatory change creates opportunity For personal use only Positive credit reporting Potential Wisr impacts include: From 1 September 2018 major banks will • Streamlined loan application process begin providing a wider range of data to • Better risk-based pricing credit agencies. • Heightened inter
Slide 25: Our growth strategy
Our growth strategy For personal use only 1 Short/Medium term: win in our competitive channels through a superior brand, go-to-market strategy, customer experience, price point and capability of our highly talented team Long term: Build defensible channels which we own, to provide us with an 2 unfai
Slide 26: 2018 Innovations: Wisr Credit and Wisr APP
2018 Innovations For personal use only Wisr Credit Wisr APP
Slide 27: Wisr APP
For personal use only Wisr APP Wisr APP helps you pay back your debts sooner by rounding up your daily transactions to pay off: Credit Card debt Your Mortgage A Wisr Personal Loan
Slide 28: Preparing for a changing world of banking
Preparing for a changing world of banking For personal use only Superannuation Retailers In just a few years pension In less than seven years companies in the Walmart Canada’s lending Netherlands have taken business accrued banking a 10% market share in assets of nearly US$1.2b. mortgage origination
Slide 29: Key takeaways
Key takeaways For personal use only 1. Unsecured online lending is a large and growing market, with Australia a long way behind the established markets (US/UK) 2. The Wisr model is scalable, capital light and resilient, with a proven management team 3. There is a “perfect storm” in Australia for Wis
Slide 30: A fair way to financial wellness
For personal use only a fair way to financial wellness