Special Report: After strong first two quarters, MONEYME’s Q3 saw stability and progress as the fintech lender focused on improving its loan book quality, refining funding structures, and enhancing its technology platform.

MONEYME (ASX:MME) has once again delivered a solid quarter, with gross revenue remaining strong at $53m for Q3 – up on the prior quarter ($52m) but down on pcp ($61m).

The decline versus the pcp is in line with MME’s strategy to shift to higher credit quality and secured assets, with lower risk-adjusted interest rates as well as lower net credit losses.

The loan book balance for the quarter remained stable at $1.15 billion, flat Q-on-Q but down slightly from $1.18bn on the pcp, as the company focused on increasing the ratio of its secured assets.

Originations meanwhile were $133m for Q3, slightly down from the prior quarter ($147m), but significantly higher against the $98m booked in the pcp.

This also reflects the company’s continuing focus on moderated growth and prioritising secured assets.

MME says it expects to grow originations as the economic environment improves.

“MONEYME’s third quarter results reflect stability and progress as we continue to execute on our key strategies,” said Clayton Howes, MONEYME’s CEO.

“During the quarter, we further enhanced the quality of our loan book, optimised our funding structures, and extended our technology advantage through several platform updates and product refinements,” he added.


Continued uplift in loan book quality

Most notably, MONEYME’s push to improve its loan book quality has resulted in net credit losses of 4.8% in Q3, down from 5.9% in the pcp, supported by a higher Equifax credit score average of 751, compared to 741 in the last quarter and 718 in the pcp.

This push towards prioritising secured assets has also resulted in the loans with an Equifax credit score ≥ 600 increasing to 87% for Q3 – compared to 86% in Q2 and 82% in the pcp.

Further, the ratio of secured assets in the group’s loan portfolio has now increased to 51% for Q3, higher than Q2 (48%) and the pcp (42%).

“Gross revenue has remained strong at $53m, despite our shift to higher credit quality and secured assets with lower risk-adjusted interest rates,” said Howes.



“Importantly, the increasing credit quality of our loan book has continued to support MONEYME’s resilience, with net credit losses maintained below 5%.”

The improvement of MONEYME’s loan book in Q3 follows its success in the first half to uplift its customer credit profile.

MME believes strong customer diversification is critical in reducing risk and promoting resilience.

The fintech caters to the aspirations of ambitious Australians, whom it refers to as ‘Generation Now’, offering near real-time application processing for car loans, personal loans and credit cards that settle in minutes.


Preparation for future originations growth

Despite the current dynamic economic landscape, MONEYME has continued its trajectory of refinement and expansion.

The fintech lender has moved rapidly to position itself for future growth in its core products, particularly in its secured car loans and personal loan products by bolstering its funding program on improved terms and capital efficiencies.

The expanded funding capacities, including the extension of MME’s Autopay warehouse facility, is expected to help enable originations growth, which in turn will drive increased scale and profitability over time.

During the quarter, several key advancements were made to MME’s technology platform, Horizon, and its artificial intelligence application, AIDEN.

Updates on this front include streamlined application processing, expedited loan settlements, and refined biometric identity verification, epitomising the company’s dedication to innovation and user experience.

“Our preparations for future growth are underway, with the expansion of our funding program and enhancements to our Horizon technology platform and AIDEN, our artificial intelligence application,” said Howes.

“These updates will enable us to efficiently scale our core products, particularly secured car loans and personal loans, when macroeconomic conditions begin to improve.”

Separately, the launch of an expansive advertising campaign marks a strategic move to elevate MONEYME’s brand awareness and consideration.

This campaign leverages pre-paid media spend obtained as part of the acquisition of SocietyOne in March 2022, and features TV commercials that will run throughout the AFL 2024 season.

“Our advertising campaign is a well-timed opportunity to use the prepaid media spend from the SocietyOne acquisition to build the MONEYME brand this AFL season and further support our return to growth,” Howes said.

To help drive these growth initiatives, MONEYME welcomed Jamie McPhee to its Board in March.

“With his extensive experience in financial services, Jamie brings valuable insights to our business,” said Howes.


ESG initiatives

During the quarter, MME established a new charity partnership with World Vision Australia.

MME said the partnership will support hundreds of vulnerable children and the wider community in improving vital outcomes such as access to clean water, education, health, and child protection services.

“I am excited to share that MONEYME has formed a charity partnership with World Vision Australia, underscoring our commitment to having a positive environmental and social impact, as well as cultivating a purpose-driven culture,” said Howes.

During the quarter, MONEYME’s overall employee engagement score was 81%, well above the Finance Australia benchmark of 71%.

MME said the survey also showed that its employees have a strong belief in the company’s commitment to social and environmental responsibility.


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.