SocietyOne has signed a landmark warehouse funding deal with Westpac that will give them $200m of further capacity.
This is the second such deal that the personal lender has secured, and comes on the back of an asset-back securities bond issue last month. Westpac will provide the funding, joining NAB as a warehouser for SocietyOne.
The Big Four bank has been working with SocietyOne since February, when the personal lender signed up to Westpac’s banking-as-a-service platform 10X.
SocietyOne already boasts a strong broker base, led by former Westpac and MyState exec Tony MacRae, who joined as their chief commercial officer in July.
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“You’ve got a case where the personal loan market is finding clear areas where people want to play: there’s traditional guys like us, playing in personal loans for higher quality borrowers, you’ve got BNPL at the lower level and you’ve still got the payday lenders out there,” explained chief investment officer John Cummins back in September, when the ABS deal was signed.
“The consumer side, such as us in personal loans, plus the BNPL space, is seeing capital markets and institutions saying that if we can convince them that we’ll write loans to the quality that they can invest in, they’ll buy them.”
