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The non-bank lender has credited improved technology as a key driver behind a sharp increase in origination volumes.
Latitude Financial Group Holdings Ltd (Latitude) has revealed that new origination volumes for personal and auto loans in its Australian business grew by a third for the financial year ending 31 December 2024 (FY24).
According to the group’s results, new personal and car loan originations were up 33 per cent to $1.48 billion, a new record high. Originations surged in the second half, according to the lender, setting a new half-year record of $747 million in 2H24.
Personal and motor loan receivables grew to more than $3 billion. Latitude said the increase makes the company’s Australian personal loan portfolio the second-largest in the country, by brand, ahead of three of the four major banks.
New personal loans issued in Australia were the key driver, with receivables up 15 per cent annually to $1.8 billion, driven by strong originations.
The lender said that new origination volumes for personal loans in Australia increased by 30 per cent year on year to $896 million.
Growth was attributed to pricing changes to improve margins, better technology system integration (including the full integration of Symple’s technology platform following its acquisition), and increased marketing investment, leading to growth in both broker and direct channels.
In Latitude’s New Zealand business, new origination for personal loans jumped 30 per cent to $249 million, driven by direct channel performance and a growing broker network.
Over the last 12 months, around 42 per cent of Latitude personal loans were written via brokers, increasing to well over 50 per cent with motor loans.
New auto origination volumes rose sharply by 49 per cent year on year to $330 million. The increase was attributed to price optimisation, system integration, and the improved broker platform.
Auto loan receivables were up 4 per cent to $737 million.
A Latitude spokesperson told The Adviser that its relationship with brokers is “fundamental to our growth in personal and auto loans”.
“During 2024 broker-originated loans outpaced direct loans and we expect this trend to continue this year,” they said.
Looking ahead, managing director and CEO Bob Belan said: “With the prospect of more stable macro-economic settings in 2025, alongside the work undertaken to create a more agile and focused business, we are confident of continued and sustained profit growth.
“We expect the interest rate easing cycle to continue in 2025 which should further support net interest margin expansion.
“Despite cost of living pressures, strong labour markets and further rate relief are likely to support increased consumption and lending demand as the year progresses.”
Future investments include digitisation, AI, and cyber security (which has been bolstered following the group’s 2023 cyber incident).
Latitude to roll out broker academy
Speaking to The Adviser, a Latitude spokesman stressed the importance of brokers for fueling future growth.
“Brokers are crucial because while they complement our traditional direct channels, they also provide customers with choice and are an excellent source of information that customers may not have otherwise considered when searching for finance,” they said.
The company said it plans to open a ‘broker academy’ this year, a free service for new Australian brokers to support their learning on the fundamentals of lending.
The program will be a two-week course of 10 modules for brokers.
[Related: Brokers reveal which non-bank products are the best]
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