Trading data for July and August shows the company’s momentum continues to accelerate.
After a record year in FY21, leading fintech lender MoneyMe (ASX:MME) flagged its ambition to convert that growth into even stronger profit metrics in FY22.
And with its market update yesterday, the company confirmed that it’s on track to meet that target with more record loan originations in July and August.
Starting FY22 with a bang
Despite the impact on extended lockdowns through Australia’s major east coast markets, MME booked another $112m of new loan originations on its platform.
That’s up a whopping 307% from the same two months last year ($27m), and is also stronger than the first two months of Q4 FY21 (April and May), when new loan originations totalled $105m.
In response to the update, shares in MME closed 1.4% higher yesterday as the stock pushes back towards new all-time highs above 2.30.
Along with expanded loan growth, MME also posted material improvements across a number of other key business metrics.
Contributing to the strong start in FY22 was MME’s market-leading AutoPay platform – a new financing solution to provide customers with same-day, drive-away vehicle finance.
After generating $6m in new loan originations immediately following its Q4 launch, lending through AutoPay surged to $18m in July and August alone.
As AutoPay accelerates, MoneyMe also announced a major new distribution partnership with automotive software company EasyCars.
The deal will see MoneyMe’s vehicle finance platform integrated directly with the EasyCars network, which currently serves more than 900 car dealerships.
Through the new partnership, AutoPay will be included as a new offer for each of those dealerships as part of their ongoing customer relationship management (CRM) practices.
“The rapid growth in Autopay is exciting, and the new partnership with EasyCars will further accelerate our penetration into the auto-finance market by making Autopay more accessible to dealers,” MME CEO Clayton Howes said.
Loan strength
While MME continues to hit new records with its top-line loan originations, that growth has been accompanied by increasing strength in its loan book as the company leverages its tech advantage to maintain disciplined customer assessment practices.
MME also announced yesterday that its average customer score on Equifax (an industry-standard credit ratings agency) had increased to 675 by the end of August – up from 650 as at June 30.
And as it builds traction with a diversified product offering and lower funding costs, today’s update shows MME’s management team is converting on the opportunity to build a fintech lender with stable, long-term profit growth.
In addition, the company is doing all of that amid what marks a step-change in consumer lending in Australia, as big banks step back from the space. In that context, the broader market opportunity is still in its relative infancy.
“We are incredibly pleased to see the strong originations growth and increasing credit quality in the business, especially in the current environment,” Howes said.
“It is a testament to our product diversification strategy, and the huge growth opportunity that exists in this market.”
This article was developed in collaboration with MoneyMe, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.