The growth in our lender base is hugely important to us. When we set about establishing Plenti^ (then known as RateSetter) in Australia, our ambition was to provide consumers with a compelling alternative to using their bank for savings and loans. An alternative that provided significantly better value, transparency and control for all Australians, not just wealthy or institutional investors.
Reaching this milestone shows that we are well on our way to providing that investment alternative to a healthy number of Australians. We look forward to the number of our lenders growing to five, six and then seven digits!
So, what do our first 1000 lenders look like? Interestingly, the Plenti’s leading the charge in shaking up finance in Australia aren’t perhaps who you might expect.
Across the country
Plenti lenders span the entire country, from Denham in Western Australia all the way to Byron Bay in NSW. While most of our lenders are city-dwellers, almost 30% live in rural or country areas. The greatest number of people live in NSW, followed by Victoria, Queensland and the ACT.
Young and old
Plenti has proven especially popular with younger, tech-savvy ‘millennials’ with 72% of investors aged 39 or below. In Queensland and Victoria, we’re most popular with lenders in their 30s, with other states (except Tasmania) attracting more lenders in their 20s. However, lenders aged between 50 and 89 are making higher-value investments in the platform, with those in their 70s lending more than $15,000 on average, and those in their 80s more than $34,000.
Men and women
Of the early adopters lending on Plenti, 84% are men. Western Australia has the greatest share of women lenders, with 23%. Whilst they might seem a male-heavy bunch, we think that this will change over time. Research from the UK, where consumer lending is more established, suggests women are equally as likely as men to participate in crowdfunding or consumer lending.
Large and small
Since our launch in late 2014, our lenders have funded over $7 million dollars in loans, and have earned over $107,000 in total interest. The average value of funds invested on Plenti is around $6,300. However, there’s a fair bit of variation between our largest and smallest lenders. Many start with small amounts (you can start lending on Plenti from just $10) and build up their portfolio over time.
Lenders investing via their self-managed super fund (SMSF) comprise almost 10% of the total, with South Australia having the greatest proportion of SMSF investors at 12% of total South Australian lenders.
So, a big thank you to all our borrowers and lenders for helping us reach this milestone and we look forward to sharing the success of further growth with you.
^Plenti was known as RateSetter prior to August 2020.
*Important notice: This post is accurate as at 3 August 2015
This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of Plenti as at the date of publication and may later change without notice.