Fintech lender celebrates 1 year anniversary
(26 May 2016 – Australia) Berlin based online lender, Spotcap has issued over A$11 million dollars in loans to businesses in its first year of operations in Australia.
According to the lender’s managing director, Lachlan Heusler, the “fintech lending” space will continue to grow before the industry consolidates.
“I think the core brands that have established themselves in Australia will continue to grow,” he told The Australian.
“I don’t think there will be any consolidation in the short term, but maybe it will occur in the next two to three years when businesses like ourselves start to hit reasonable scale. There will be those that hit reasonable scale and those that don’t and then maybe some consolidation.”
Spotcap said it had averaged monthly growth of 30 percent and expected to increase its loan book to around A$33 million in the next year.
“We’re hoping to do more than three times the $11m in our second year. It’s good growth and will come as we scale our business and we develop partner channels as we bring on larger corporate partnerships,” Heussler said.
The firm did not reveal its bad debt losses, but said they were ahead of expectations and “pent up” demand from quality customers would allow strong growth even if the economy deteriorated.
According to The Australian, Spotcap’s rival, and Australia’s biggest fintech lender, Prospa has moved beyond the A$150 million mark in small business loans after four years of operations.
In March 2016, East & Partners’ Business Banking Index found that 25 percent of the “Big Four’s” business customers had applied for loans with a non-bank provider, while over a third of all Micros and SMEs has sought financing via non-bank lenders.
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