Australasia’s peer-to-peer lending marketplace Harmoney announced this week it has exceeded its loan origination forecasts for the six months to 31 December 2020 (on an unaudited basis), delivering total loan originations of NZ$194m for the period, 2% ahead of Prospectus forecasts. The marketplace also revealed New Zealand loan origination increased by 44% in Q2 FY21 to NZ$89m, versus NZ$62m in Q1 FY21.
Meanwhile, Australian loan origination increased by 69% to NZ$27m in Q2 FY21 versus NZ$16m in Q1 FY21 and second New Zealand securitization warehouse established with M&G Investments of up to NZ$200m is now operational, significantly reducing Harmoney’s cost of funds as it accelerates its transition from its legacy peer-to-peer funding model. Harmoney further noted that it has originated a total current loan book of NZ$469 million in Australia.
Commenting on the recent milestones, Harmoney CEO and Managing Director, David Stevens, stated:
“We are really excited with our loan origination momentum in the quarter ended 31 December 2020 (Q2 FY21). Our recent quarterly performance reflects a significant return to pre-COVID lending volumes, with 47% growth experienced in the December quarter across the Australian and New Zealand markets. This is a volume recovery which we expect to sustain into the second half, as consumers demand more agile, flexible and convenient online borrowing experiences. Our strategy to limit new loan originations during the COVID-19 impacted period meant our loan growth slowed year-on-year. However, in line with the wider economic recovery, we have adjusted credit settings and ramped up marketing activity with a focus on attracting a strong pipeline of high quality borrowers in Australia and New Zealand..”
Launched in 2014, Harmoney stated its purpose is to help and inspire people to achieve their goals through financial products that are “friendly, fair, and simple” to use. The company also noted that it sought to transform the way people borrow and lend money by creating what it claims to be Australasia’s largest personal marketplace.