Australia’s only listed marketplace lender DirectMoney announced today the passing of a new milestone, having issued $1.92m of loans in March 2016, up from its previous record settled in January 2016 with $1.5m. Looking at the performance of the whole quarter (Q1 2016), the company has issued $4.71m of loans to 219 borrowers, registering a 48% increase on the prior quarter.
Founded in 2006, but launched in late 2014, DirectMoney refers to itself as a marketplace lender. Borrowers can apply for loans of between $5,000 and $35,000 and repay them in periods of time ranging from 3 to 5 years. DirectMoney has issued $15.65 million of loans to 810 borrowers with an average interest rate of 12.7% since October 2014. DirectMoney listed on the ASX last July - raising $11.2m via an IPO - becoming the first marketplace lending business model to float in Australia and the fifth globally.
DirectMoney CEO Peter Beaumont commented:
“I am tremendously pleased to report that the DirectMoney team has delivered a record lending month in March 2016 and a ~50% uplift quarter on quarter. Both our direct and broker channels are performing, proven and expanding.”
“DirectMoney’s market visibility continues to grow both directly with consumers and through third party channels. The growth opportunity is best highlighted by the fact we have agreements with an initial ~350 accredited brokers out of ~4,500 brokers that are affiliated with our broker aggregator partners. Growing the number of brokers that originate DirectMoney loans is an ongoing focus for our team.”
The platform revealed that loan origination growth has being driven by strong partnerships with broker aggregators and direct online channel marketing. As March 31 2016, $12.5m of loans written by DirectMoney to 689 borrowers were owned by several parties, including the likes of DirectMoney itself, Macquarie Bank, the DirectMoney Personal Loan Fund and a major (undisclosed) shareholder.
The Sydney-based platform forged a strategic partnership with Macquarie Bank last February. As a part of the deal, Macquire purchased A$5 million of personal loans originated by DirectMoney. The placement was the first institutional placement of DirectMoney’s personal loans and establishes the infrastructure for further access to debt capital markets investors.
Mr Beaumont concluded making predictions for the future:
“The loan origination performance in the quarter augurs well for future origination volumes and DirectMoney’s ongoing growth. While loan settlements are pleasing, volumes are still in their infancy. With the necessary infrastructure and technology platform now in place, our team is fully committed to realise our vision of establishing DirectMoney as Australia’s leading marketplace lender”.