RateSetter sails past $500 million in loans funded

In April, RateSetter passed $500 million of consumer loans originated, making RateSetter the fastest Australian marketplace lender to reach this figure.

The milestone comes at the end of a busy six months for RateSetter, having secured a $100 million partnership with the Government of South Australia and the Clean Energy Finance Corporation in October 2018, and completing a significant capital raising of $17 million in December 2018. This additional investment in RateSetter has been funded by a number of high-profile investors including Federation, Myer Family Investments, Five V Capital and Sturt Capital.

This is an exciting achievement for RateSetter but, more significantly, it evidences a change in the mindset of Australians, who are continuing to move away from the traditional bank model for personal lending and investing.

Investor growth powers performance

Much of our recent growth has been powered by our 15,000 registered retail investors. By providing investors access to the attractive asset class of consumer credit, everyday Australians are earning more and achieving their financial goals faster. Investors on our platform have, since inception, received an average return of 9.08 per cent per annum on investments in our five-year lending market, 7.86 per cent in our three-year market, and 6.05 per cent in the renewable energy lending market.

We’re now a popular investment choice for investors across all demographics, including a growing number of SMSFs. 2018 was a particularly strong year for growth in millennial and GenX investors, as they increasingly seek out alternatives to low yield bank investments and volatile equities.

2018 new investor registrations by age group

RateSetter’sautomotive lending markets are also attracting investor attention – the RateSetter platform has seen more than $50 million invested into secured automotive loans from wholesale investors, including a number of prominent ADIs and institutional investors.

RateSetter’s renewable energy lending growth has been especially strong, increasing by over 200% over the last 12 months. This growth is on track to continue over coming years as we expand our presence in the renewables space, and our commitment to ethical investing, including funding for electric vehicles.

The growth we’ve seen so far is fantastic, particularly in the renewable energy space. While these loans represent a smaller portion of our overall business, it’s an important and growing area that Australian consumers are actively responding to.

We’re only just getting started

Our vision when we set up RateSetter was to help Australians do better, together. Whether they are borrowing or investing, we want to put more money in their pockets. Hitting this half a billion figure is evidence that we’re on track. We have a line of sight to becoming Australia’s leading consumer lender and the country’s largest manager of consumer loans. We are proud of RateSetter’s progress to date and confident about our future growth as Australians continue to receive simpler, fairer finance.

This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of RateSetter as at the date of publication and may later change without notice.

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