Brokers contribute to Plenti’s record results

Fintech vehicle and personal lender Plenti has released its full year results for the year ended March 31, 2022, with brokers facilitating more than half a billion dollars in loans for the year.

Plenti achieved record loan originations of $1.1 billion – up 134% year-on-year, while its loan book of $1.3 billion was up 111% year-on-year and a record interest revenue of $87.3 million was up 72% YOY.

Plenti CEO and founder Daniel Foggo (pictured) said broker partners represented the most important channel to the digital lender.

“It is a two-way street and we are devoted to the broker channel and providing them with streamlined tech and good service,” Foggo said.

“Our broker automated loans grew 150% YOY and the proportion dramatically increased of originations coming through the channel.”

Foggo said Plenti delivered exceptional growth and was pleased to transform growth into profitability.

“Brokers are definitely important as part of our growth,” he said.

“When interest rates go up, personal loan growth increases. If people are more constrained with their personal income, it makes sense for them to partner with us.”

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Plenti are planning to grow and increase the broker channel further across the next 12 months.

“We want to be brokers preferred lender and build market share,” Foggo said.

“By constantly improving our services and having a dedicated tech team who is always diligently working away at things to provide a smooth and efficient process is important to us.”

Foggo said Plenti delivered on its strategic goals for the year by achieving profitability and efficiency objectives ahead of target dates.

“Commercial automotive loans launched with a market-leading customer experience, approximately doubling the size of Plenti’s automotive loan target market,” he said.

“We also entered partnerships with several large energy retailers and a funding agreement with an electric vehicle manufacturer.”

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Foggo said personal lending grew to $365m, which was 100% above the prior year.

“This growth was achieved whilst also further enhancing the average credit profile of borrowers,” he said. “The average Equifax credit score on the loan portfolio increased from 821 at the start of the period to 838 at the end of the period.”

In vehicle finance, loan originations grew 177% above the prior year to $639 million, while renewable energy loan originations were up 72% to $98 million.

Foggo said higher funding costs on new loan originations were partially mitigated through increases in borrower rates.

“Plenti expects borrower rates to continue to increase over the coming months as the market adjusts to higher funding costs,” he said.

Plenti’s outlook is to establish market leadership positions in each of its segments and extend its product and technology to optimise its funding.

“Our focus in the first half of FY23 will be on the yield we can achieve on new loan originations while driving further operational efficiencies. In the second half of the year, we will return to focusing on achieving market share gains,” said Foggo. 

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