MoneyMe passes key $1 billion originations in record-breaking start to FY22

MoneyMe’s focus on targeting the ‘Generation Now Customer’ and persistent innovation is paying off with significant growth.

Fintech lender MoneyMe (ASX:MME) has passed the $1 billion originations, a significant milestone from its initial start-up in 2013.

In a strong start to the 2022 financial year, MoneyMe recorded quarterly revenue of $23m for the quarter ended 30 September 2021, a 92% increase compared to the previous corresponding period (pcp).

Originations increased to $173m, up 283% on the pcp and increasing from $161m in Q4FY21.

Gross customer receivables of $452m meant a 227% rise on pcp and were 36% higher than the prior quarter of $333m.

Personal Loan and Freestyle main contributor to originations

Personal Loan and Freestyle continue to contribute the most to originations, maintaining strong performance during the lockdown period alongside the company’s ListReady and MoneyMe+ platforms.

Autopay has achieved significant growth despite the challenges for car buyers during lockdown, achieving originations of $37m in Q1 FY22 representing an increase of 479% on Q4 FY21 of $6m.

The average receivable term for MoneyMe increased to 41 months from 37 months in Q4 FY21 and the average receivable size rose to $12,950 from $10,200 in the previous quarter. The average contract life-time value now stands at $124m, up from $98m in Q4 FY21.

Further funding runway to enhance growth

MoneyMe increased overall external commitment in its major bank warehouse funding facility to $426m on October 8, up from $250m in Q4 FY21.

The increase has been timed to provide additional resources to continue funding its accelerating originations growth.

Furthermore, MoneyMe has executed on a strategic funding deal with leading private equity firm Pacific Equity Partners. The deal will see PEP make an initial commitment of $50m, through a hybrid funding instrument over a four-year term.

MoneyMe is focused on building out its capital structure to capitalise on rapid lending growth across all its key verticals.

Credit and book quality metrics continue to perform strongly with net charge-offs of 5.4%, down 3% on pcp. COVID-19 deferrals remained low at 0.2% of gross customer receivables with the company forecasting it is well-positioned to ride out the continuing pandemic environment.

Innovation and focus on ‘Generation Now customer’

MoneyMe’s managing director and CEO Clayton Howes said the $1bn origination milestone reflects the company’s consistent focus over time to invest in and develop the digital capabilities of their Horizon technology platform.

He said focus on the “Generation Now customer” and persistent innovation was also driving growth with COVID-19 lockdowns having minimal impact.

“The record revenue, originations and customer receivables demonstrate our business is continuing to accelerate even in the face of extended lockdowns,” Howes said.

“At the same time credit quality is being maintained, and we’re seeing our diversified product and distribution strategy paying off.

“This quarter’s results demonstrate Autopay is gaining significant traction, with dealerships and brokers signing up to the new platform and a faster than expected take-up from car purchasers.”

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.