MoneyMe shares rip higher again as loan growth accelerates
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The numbers show MME is now established as a leading tech provider in Australia’s fast-growing consumer finance market.
Fintech lender MoneyMe (ASX:MME) has booked another record month for loan originations in May, boosted by strong early growth for its Autopay vehicle finance platform.
And investors have rewarded the company for its strong execution, sending MME past 12% higher in morning trade. The move capped off a strong recent rally, with shares in the company climbing back to north of $1.80.
The gains reflect MME’s substantial operating momentum in the first half of 2021, where it booked five straight months of growth in new loan originations.
The strength of that growth is reflected by the fact that loan originations in May came in at $57m – a gain of almost 100% from January ($30m).
Commenting on the results, CEO Clayton Howes said the growth reflects MoneyMe’s ability to meet the financing demands of modern consumers based on automation and fast settlement, with a diversified product set.
The latest example of that is Autopay, which allows customers to obtain same-day vehicle finance through MME’s market-leading loan assessment platform.
Since its launch in late April, MME’s Autopay service financed over $1.2m worth of vehicle transactions in May with just 10 dealers onboarded to its platform.
As at June 12, the company had already facilitated over $1m in new loans this month, leaving it on track to more than double the May total.
“Demand from the dealer and broker industry for the product has been significant and we expect origination volumes in Autopay to grow materially,” Howes said.
Along with its surging top line growth, Howes and the MME executive team have been busy building out its capital base, including a $15m bond issue and its recently expanded wholesale funding facility which now amounts to about $300m.
The net result is a business that now has the capital base it needs to capitalise on its market opportunity, with surging growth in new loan originations and top-line revenue.
MME’s expanded wholesale funding base also drives its cost of capital lower while revenue increases – a combination which will flow through to larger net profits in the years ahead.
With the business now established for further growth, MME is all set to capitalise as a leading tech platform in Australia’s fast-growing consumer finance 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.