Origination volumes in the 17 months since Symple Loans’ launch in January 2019 “are approaching $40 million,” CEO Bob Belan tells Banking Day.
Symple’s strategy is focused on the super-prime segment of the consumer lending market, a strategy Belan labels “an intentional decision to ensure low, stable and predictable loss rates during times of economic contraction” - a lesson learned while running unsecured lending businesses overseas during the GFC.
Application volumes for personal loans fell off in April and remained subdued in early May but are now normalising, the Symple CEO said.
“Applicant credit quality during this time declined which you’d expect, but that trend appears to be reversing.
“Motor vehicle purchases and home improvement loans seem to be the categories driving the recent resurgence in demand.
“As consumers look to shore up their personal finances in the months ahead, we’d expect to see a spike in credit card debt refinancing as well.”
Symple has more funding if it finds the time ripe to rev up.
The fintech yesterday announced the increase of its securitised warehouse capacity. “preparing the business to accelerate its profitable growth strategy as market conditions stabilise.”
The facility, initially established in September 2019, now includes a mezzanine capital tranche from Costa Asset Management.
The announcement is the latest in a series of equity and debt financing transactions completed by the company in the past 9 months including an $11 million Series C equity round in December 2019. To date, the company has raised in excess of $100 million.