Australian SF Markets: Australian unsecured consumer ABS primer

Research evidence excerpt

Australian SF Markets: Australian unsecured consumer ABS primer

The sector expansion is led by specialist

non-bank lenders

While overall consumer loan lending in Australia is still dominated by banks, non-bank

fintech lenders have been a small but growing niche. Most of them rely on securitisation

as one of their funding tools, driving issuance of unsecured consumer ABS in recent

years.

Total issuance of Australian unsecured consumer ABS grew from less than A$0.5bn in

2013-16 to A$3.6bn in 2025. The lender composition evolved to comprise 10-12

different non-bank originators, the largest (in the past 5Y) being Now Finance, Latitude

Financial Services and Plenti Finance. Collateral is also quite diverse, reflecting the focus

of respective originators.

Exhibit 1: AUS unsecured consumer ABS supply low relative to auto Exhibit 2: AUPL, NOW and PLENG ABS accounted for c.70% of the total

ABS but growing in 2024-25

AUS ABS issuance, A$mn AUS unsecured consumer ABS issuance, A$mn

12,000 4,000 AUPL BCPL

ABS Auto CARDS CONSUMERS CRDABLE FLEXI/HUMM

10,000 MMEPL NOW

3,000 PLENG SCTY

8,000 WISR Other

6,000 2,000

4,000

1,000

2,000

0 0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Source: Bloomberg, IFR, rating agencies

BofA GLOBAL RESEARCH

We estimate there were 23 ABS from nine programmes outstanding as at end-2025,

totalling c.A$4.7bn, a c.50% increase from end-2024.

Pricing of AAA tranches in the primary market, while not very consistent previously due

to a small number of deals, shows a c.25bp premium vs Australian prime RMBS AAAs,

just a few bp outside Australian NC RMBS AAAs and c.15bp outside Australian auto ABS.

Secondary trading volumes are small given the size of the sector, with c.€100mn traded