Demographics and the Wisr Share Price: A Risk to Consider (ASX:WZR)

The Australian financial sector has had a turbulent past couple of years to say the least.

In particular, the Big Four banks have been put through the wringer. And it’s played into the hands of the Wisr share price, at least until the pandemic leads to aggressive de-risking.

We’ve seen small- and mid-cap companies that were up significantly sold off for no apparent reason other than the need for taking money off the table amid a dash for cash.

With the weakening of the banks’ grip on the Australian consumer thanks to the Hayne Royal Commission, a younger generation of financial institutions have begun taking the place of traditional banks.

The Big Four banks have noticed too.

Australia and New Zealand Banking Group Ltd [ASX:ANZ] got rid of its wealth management arm, Commonwealth Bank of Australia [ASX:CBA] sold its life insurance business, and National Bank of Australia Ltd [ASX:NAB] moved on from its funds business.

Aussie fintechs have shown just what is at stake if you get your product right — take a look at the success Afterpay Touch Group Ltd [ASX:APT] has had.

Cue Wizr Ltd [ASX:WZR].

WZR is another Aussie fintech start-up who specialises in personal loans.

The neo-lender packages itself as a smartphone-enabled, automated, personalised, low-interest lender.

Launching back in 2015 after a rebrand, the neo-lender’s share price saw massive growth as it targeted the banks’ personal loan business.

Specifically, it was out for the millennial demographic.

In 2019, the WZR share price (blue) rocketed up nearly 460%, beating out the APT share price (red) who only put up a modest 174% return.

Source: Trading View

Even with the current market crash, WZR has still posted a one-year return of ~85% and is up 25.93% at time of writing.

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