Payday lender closes funding round and changes risk assessment tactics

Elizabeth Barry 21 November 2016

assessing credit risk

Short-term lender enably is focusing on better risk assessment and larger loans after its recent funding round.

enably, a short-term lender that has recently rebranded from Loan Ranger, will be focusing on a "responsible lending" scorecard rather than a risk scorecard, which it says it traditionally used by lenders to assess the suitability of a loan for a borrower.

The payday lender has also recently closed one of the largest startup funding rounds of 2016, raising $33.5 million in debt and equity capital.

Speaking to the Australian Financial Review, CEO Andrew Kirkwood said enably will use the information gathered from the mandatory assessment of 90 days of a customer's banking history as well as the Enably IQ system to benefit consumers.

"Traditionally, lenders have used a risk scorecard that looks at various data points, but we've taken a different stance where we use that risk card, but it's secondary to a responsible lending scorecard," he said.

"We look at customers as individuals with unique lending circumstances and we examine their last 90 days of banking data and how much they spend on things like food, bills and other debt repayments they have."

The enably IQ system involves rejected applicants receiving their credit score as well as educating them on what their credit score means and how to improve it.

enably recently closed a $33.5 million funding round from Chicago billionaire Richard Driehaus and Ney York-based hedge fund Corbin Capital Partners. The funds will be used for business growth and to eventually offer larger loans.

"We're looking to grow fairly aggressively, so there will be further funding requirements in the future. Nothing is off the table and we're looking at how we can continue to increase our loan offering and have different products for consumers."

Latest news in payday loans

Image: Shutterstock

More great ideas from finder.com.au

Get a life insurance quote
Get a life insurance quote

Find out what it costs to protect yourself and your family

More info...
Refinancing home loans
Refinancing home loans

Choose from offers with rates as low as 3.39% p.a.

More info...
Google Pixel
Google Pixel

Compare plans for Google's flagship Android phone

More info...
Christmas ideas
Christmas ideas

Visit our Christmas homepage for gift ideas, markets, travel & deals

More info...

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback