April 2, 2025
The Fintech Lender with Plenti-ful Growth
This ASX-listed fintech has rapidly taken billions of dollars in market share in the consumer loans space, and it’s only just getting started.
Scan this article:
Personal loans, car loans, medical loans, travel loans, wedding loans, renovation loans – you name it, Plenti has it.
A specialist in consumer loans, Plenti has built a $2.4 billion loan book, expanded into high-growth sectors like EV finance and renewable energy loans and even landed partnerships with big names like NAB, Tesla and Cadillac.
Let’s take a deep dive into one of the ASX’s fastest growing digital lenders.
Bringing peer-to-peer lending to retail investors
Founded in 2014, Plenti launched with a bold vision: to disrupt the traditional lending model.
Back then banks controlled consumer lending with rigid terms, high interest rates and a slow, cumbersome approval process that involved endless back and forth.
Plenti came out with a simple pitch – cut out the middleman, lower costs and speed up the lending process. It became the first in Australia to open a peer-to-peer (P2P) lending platform to everyday retail investors. Borrowers gained access to competitive interest rates, while investors discovered a new way to invest their money.
Plenti’s IPO story
While P2P lending was a great starting point, it had its limits. Relying on individual investors to fund loans wasn’t scalable in the long run. To keep growing, Plenti needed bigger, more stable funding sources.
By 2020, the company pivoted. It secured institutional funding and went public on the ASX.
The IPO gave Plenti the capital to expand beyond unsecured personal loans and into secured lending markets like car loans and renewable energy finance.
More importantly, it gave the company the financial backing to compete with banks at scale in the lending space.
What Plenti’s business model looks like
Since its IPO, Plenti has come a long way – it’s now evolved into a full scale fintech lender, using technology to make borrowing faster, easier and less expensive.
Plenti also now gets the capital to fund its loans from three sources – P2P lending, warehouse facilities (i.e. from banks and institutional lenders) and bundling loans into securities for investors (securitisation).
Breakdown of Plenti’s funding
As of 30 September 2024 (latest available data at the time of publishing this blog), Plenti’s borrowings can be broken down as follows:
- Investor funds (P2P): 8% of total borrowings
- Warehouse facilities: 35%
- Asset-Backed Securities: 55%
- Others: 2%
Before Plenti gets enough loans to bundle them into ABSs, Plenti also uses warehouse facilities – short-term funding provided by banks and institutions.
These act as a temporary pool of capital, ensuring loans can be issued immediately without waiting for investors to buy ABS. This keeps Plenti’s lending cycle moving smoothly.
What types of loans does Plenti offer?
Plenti has also expanded its loan offerings to a wider selection:
- Personal Loans – Unsecured loans for everything from home renovations to debt consolidation.
- Automotive Loans – Competitive car financing, including electric vehicle loans.
- Renewable Energy Loans – Finance for solar panels, battery storage and other green energy projects.
And at rates competitive with the Big Four banks. See personal loan rates below for example:
| Rates starting from… | Interest Rates | Comparison Rates |
|---|---|---|
| Plenti | 6.57% pa | 6.57% pa |
| ANZ | 7.49% pa | 8.18% pa |
| CommBank | 7.99% pa | 9.04% pa |
| Westpac | 8.00% pa | 9.18% pa |
| NAB | 8.49% pa | 9.88% pa |
Source: Plenti’s Personal Loan Rates as at 19 March 2025. Interest rates show borrowing costs while comparison rates include fees and charges.
A digital-first approach that sets Plenti apart
And perhaps what really sets Plenti apart is its digital-first approach. Plenti boasts proprietary technology that now processes loan approvals in hours or minutes – unlike traditional banks which can take days or even weeks.
For tech savvy consumers and efficiency focused loan brokers, this means a seamless borrowing experience, free from the red tape of old school lenders.
What do Plenti’s numbers look like?
Now that we’ve seen what makes this fintech lender’s business model stand out, how do its numbers measure up? Here are some key figures (all stated as at H1 FY25, Plenti’s latest publicly available financial report):
- Double-digit revenue growth: Plenti has achieved an impressive 45% compound annual revenue growth rate over the last three years.
- Impressive net interest margin (NIM): Plenti boasts a NIM of 5.3%. The average NIM – a key profitability metric for lenders – for major banks currently only stands at 1.8%. More on NIM in the following sections.
- Decreasing cost-to-income ratio: From over 60% three years ago to 24% today, a lower cost-to-income ratio signifies Plenti’s increasing operating efficiency. More on cost-to-income ratio in the following sections.
- Newly profitable: Plenti reported a statutory profit of $0.94 million for H1 FY25. Plenti’s profitability has fluctuated over the last few periods.
- Growing Cash NPAT: Plenti has recorded positive and growing Cash Net Profit After Tax (NPAT) since FY2022. In H1 FY24, it recorded a Cash NPAT of $5.5 million, up 260% from the previous year.
How Plenti makes money
Plenti’s growing loan book was mentioned multiple times in previous sections, and that’s because like most financial institutions and lenders, Plenti generates the majority of its profit from its NIM.
The higher the NIM, the better for Plenti
Net Interest Margin (NIM) is a key profitability metric for lenders like Plenti, which measures the difference between the interest earned on loans and the interest paid on funding.
How it works:
- Plenti charges borrowers its interest rate on loans.
- It pays a lower interest rate to its funding sources (e.g. P2P, Warehouse Facilities)
- The difference between these two rates is its NIM
And with Plenti’s loan book continuing to grow, interest revenues and NIM have also increased over time.
The lower the cost-to-income ratio, the better for Plenti
Meanwhile, the cost-to-income ratio is a measure of efficiency for financial institutions like Plenti.
It’s calculated by dividing operating costs by operating income. A lower ratio generally means the business is running more efficiently, keeping costs under control while increasing revenue.
Will Plenti continue to grow?
While Plenti’s growth trajectory has been impressive, the question now is: What is Plenti’s path moving forward?
Opportunities: What’s Driving Plenti’s Growth?
Plenti’s success is not just thanks to its business model and its digital-first approach – it’s also in its ability to use its technology to support partnerships with both big and small names and increase operational efficiency.
Plenti’s proprietary technology
B2B partnerships with brokers
Apart from being a consumer facing brand, Plenti has become a go to lender for brokers.
In fact, around half of Plenti’s personal loans and over 80% of auto loans come through broker channels. While different from direct borrowers, brokers value the same things: speed, consistency and seamless processes.
Plenti’s tech-driven platform ensures applications are handled efficiently, helping it deepen relationships and grow its presence across the broker channel.
Tech that helps lower credit risk
One of the quiet achievements behind Plenti’s growth is how it’s managing risk. Since 2020, the lender has shifted its loan book toward secured auto and renewable energy loans reducing reliance on higher-risk personal loans.
But it’s not just about what they lend – it’s how they lend.
To stay ahead of risk, Plenti’s tech relies on sophisticated credit models and a dedicated risk team that continuously monitors and refines these models.
And one of the biggest advantages of owning its tech stack is the ability to act fast. Plenti can quickly adapt to credit insights and early signs of borrower stress, updating credit settings in real time. This nimbleness is critical to maintaining strong credit performance and lowering credit risk.
NAB, AGL, Tesla, Cadillac
Plenti has secured major partnerships with household names that have helped grow Plenti’s credibility as a fintech lender. Current deals include:
- NAB Powered by Plenti – Plenti has teamed up with NAB to roll out “NAB powered by Plenti,” a co-branded car and EV loan. NAB promotes the loan to its customer base while Plenti takes care of the entire lending process. The two companies are also in discussions around Plenti providing a renewable energy solution finance referral program for NAB customers.
- Tesla and Cadillac – Plenti has sought to be a leader in EV financing, including partnerships with Tesla and Cadillac. By combining Plenti's advanced technology with the car manufacturers’ innovative approach, the collaborations aim to enhance the customer experience for Aussie EV buyers.
- Government-backed green energy funding – Plenti secured $60 million in funding from the Clean Energy Finance Corporation (CEFC) to finance solar and battery loans, giving it a strong position in Australia’s transition to renewable energy.
- AGL – Plenti has also partnered with AGL to allow customers to finance their solar and battery systems with friendly terms and competitive interest rates.
These partnerships reduce customer acquisition costs and expand Plenti’s reach.
Risks: What Could Slow Plenti Down?
While Plenti has many tailwinds, it also faces key risks that could potentially impact its long-term success.
Dependence on Wholesale Funding
Unlike traditional banks that rely on customer deposits, Plenti funds its loans through warehouse facilities, securitisation and P2P lending. This makes it more vulnerable to changes in credit markets.
If funding costs rise or investors’ appetite for securitised loans decreases, Plenti may face higher borrowing costs or restricted capital access.
Competition from Banks and Fintechs
While Plenti has carved out a meaningful position in its large markets, it still faces competition from the Big Four banks and emerging fintech lenders. Banks have larger balance sheets and the ability to undercut Plenti’s rates if they decide to focus more on consumer lending.
Non-bank competitors including Wisr, Pepper Money and other smaller names are also fighting for market share.
Economic Conditions and Credit Risk
Plenti is exposed to economic downturns and rising interest rates. If borrowing costs increase faster than Plenti can pass them on to customers, its NIM could shrink. Additionally if unemployment rises, there’s a risk of higher default rates on personal loans.
For now, Plenti has posted decreasing annualised net credit losses with the latest (H1 FY25) being 103 basis points.
Balancing Growth with Profitability
While Plenti boasts strong cash profits (evidenced by its growing Cash NPAT figure), Plenti has only recently begun recording statutory profits. This distinction is important because while the underlying business may be performing well on a cash basis, consistent statutory profitability still remains a key milestone for long-term investor confidence.
For a listed company, delivering consistent statutory profit demonstrates that the business model can generate earnings after all costs – not just from operational performance.
Final Thoughts: A Fintech with Plenti of Upside
Plenti’s strong strategic partnerships, expansion into EV and renewable energy lending and tech-driven cost efficiency make it one of Australia’s most promising fintech lenders. However, its reliance on wholesale funding, economic conditions and competitive pressures are potential risks to watch.
Perhaps the key question for investors is whether Plenti can maintain its rapid growth while improving profitability.
If it can, it just might be able to solidify its position as one of Australia’s leading technology-led lenders.
This article reflects information accurate as of 25 March 2025.
Superhero Markets Pty Ltd has a commercial arrangement with Plenti (ABN 11 643 435 492) and investors should be aware this arrangement may influence the objectivity of the information presented. Superhero does not provide financial advice that considers your personal objectives, financial situation or particular needs. Plenti’s products are offered independently and nothing included in the information presented should be considered an endorsement or guarantee of their products and services by Superhero.
As always, it is essential to conduct your own research and due diligence before making any investment decisions. All investments carry risk so please consider carefully before investing. Remember that past performance is not indicative of future performance. Graphics, charts and graphs provided for illustrative purposes only.
Become a part of
our investor community
Why you should join us:
- Join free and invest with no monthly account fees.
- Fund your account in real time with PayID.
- Get investing with brokerage from $2. Other fees may apply for U.S. shares.
Read our latest articles
Make knowledge your superpower and up your skills and know-how with our news, educational tools and resources.
