Flexigroup humming in bnpl sector
flexigroup launched an innovative product in the increasingly competitive buy-now, pay-later (BNPL) lending space in August. Michael Malone, group treasurer, and Bianca Spata, head of group funding, at flexigroup in Sydney, give an update on the company’s strategy across its lending and funding products.
In Australia, flexigroup has taken the lead as an issuer of green securitisation. What is the status of this book and its funding opportunities?
We continue to see strength in the solar industry and have experienced 17 per cent receivables growth year-on-year. While this has been largely in the solar PV space we continue to explore opportunities to build out our offering in other green asset classes, such as batteries. While a ‘green-only’ securitisation may be something we look at in the future, the broader growth we are seeing across other industries continues to support a mixed green and nongreen offering.
Where else, asset wise, do you see the best opportunities emerging?
How does bundll fit into flexigroup’s BNPL strategy?
We see the new product, bundll, as a unique offering in the BNPL market. By teaming up with Mastercard, bundll has a much broader reach than the other BNPL products and will allow consumers to buy everything, everywhere and pay later with no interest. This product is expected to be launched to market in Q2 FY20.
A key focus of our revised strategy announced to market in February 2019 was to lead in BNPL. We firmly believe the humm and bundll products will allow us to do so.
flexigroup was exploring a credit-card master trust 12 months ago. Is this still an option?
How important is it for an issuer like flexigroup to broaden its securitisation investor base?
nonbank Yearbook 2021
KangaNews's sixth annual guide to the business and funding trends in Australia's nonbank financial-institution sector.