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The SME lender has seen a 175 per cent rise in the number of broker-originated loans in the first half of 2021, compared with 2020.
Small-to-medium enterprise (SME) fintech lender OnDeck Australia has reported that the number of loans written through the broker channel has spiked by 175 per cent in the first half of 2021 compared with 2020.
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Furthermore, the average loan size for the unsecured loans has increased by 20 per cent, rising from an average of $52,000 in 2020 to $62,000 in 2021 year-to-date.
The volume of broker-originated loans has almost doubled each month since January 2021, the lender reported.
The logistics sector has dominated demand for SME finance, with originations across transport, postal and warehousing industries rising by almost 200 per cent, OnDeck reported.
At the same time, the construction, accommodation and food services, and retail remain the three most prominent industries seeking finance for growth.
In addition, OnDeck has seen a 184 per cent increase in funding requests from industries such as professional, scientific and technical services, and wholesale trade.
Commenting on the trends, OnDeck Australia CEO Cameron Poolman said: “OnDeck is reaping the rewards of using the quieter period of 2020 to invest in new technology, streamline our systems, build an expert team and bring an exciting new process improvement to market in Lightning Loans.
“The result is that we have a superior value proposition, and this is providing outstanding opportunities for brokers to expand into SME lending.”
OnDeck Australian national channel manager Nick Reily said the results for the 12 months to 30 June has built on ongoing momentum from OnDeck’s broker channel partners throughout 2021.
“OnDeck has invested in a team of experienced agents, who understand the product and can quickly analyse a scenario for our brokers,” Mr Reily said.
OnDeck recently launched the Lightening Loans product, promising loan decisions in less than 90 minutes and funding within two hours by automating manual credit assessment processes.
The SME lender also launched the KOALA Score (formerly the Key Online Australian Lending Algorithm), which is a risk-predicting credit score model that enables OnDeck to analyse personal credit scores of business owners and provide more tailored risk assessment for business lending.
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