Company Interview / Wisr moves closer to profitability as loan book increases

Key bullet points:

Loan book up 23% to $928 million; revenue up 14%Cash impact profitability achieved in Q2; focus on operational leverageAI-driven automation enables growth with flat headcountMajor banks such as NAB (ASX:NAB) stepping back from personal lendingNo further equity capital raise expected after November’s $10.6 million placement

Andrew Goodwin from Wisr highlights significant progress for the company in its latest half-year results. The loan book has experienced robust growth, rising by 23% to $928 million, while revenue has increased 14% to $51.5 million. Even as Wisr’s net interest margin declined to 5.26% due to higher temporary funding costs, Goodwin points to improvements in profitability, with cash impact profitability achieved in the second quarter and operational leverage emerging through disciplined credit underwriting and automation.

Automation plays a central role in Wisr’s strategy, with over 83% of loans automatically approved by an AI-powered decision engine. Goodwin notes automation has enabled six consecutive quarters of growth without a corresponding increase in headcount, helping contain operating costs and improve the customer experience. Loan originations grew by more than 80% compared to the prior half, yet costs only rose around 7%.

Goodwin observes broader trends in the sector, pointing to major banks like NAB (ASX:NAB) shifting away from personal lending, opening opportunities for fintech challengers like Wisr. He confirms the business remains well-hedged against interest rate volatility, has not observed distress in its loan book, and does not anticipate further equity capital raising following a successful $10.6 million raise in November.