Non-bank lender MoneyMe turbocharges growth with ABS

• Aussie ABS hits record as global funds pile in
• MoneyMe taps Europe to fuel next growth leg
• Private credit gains steam as RBA cuts rates

Special Report: Australia’s booming ABS market is drawing global cash, and with MoneyMe tapping offshore funds, the stage is set for a fresh wave of growth.

The Australian asset-backed securities (ABS) market has come a long way since the 1990s.

These are investment products made up of bundled loans like mortgages or car loans, which are packaged and sold to investors.

For years, the Aussie ABS space was reliable and well-structured, but rarely front of mind for global investors.

When the European Union rolled out stricter securitisation regulations in 2013, Australian issuers found themselves out of sync with global investor preferences.

But fast forward a decade, and the demand for Aussie ABS is now being driven by a who’s who of global capital, which is seeking attractive spreads in a world of thinning margins.

In 2024 alone, the Aussie ABS market hit an all-time high of $80 billion. That’s not just a rebound, it’s a rebrand.

Investors from London to Frankfurt and Tokyo are piling in, lured by yields, diversification, and a surprisingly resilient pool of loans.

Non-bank lenders, in particular, have seized the moment, using securitisation to scale up, refinance and take on loan categories the banks have backed away from, especially in car finance.

Take Wisr (ASX:WZR), for example.

The company pulled off Australia’s first public ABS backed by unsecured personal loans – a $225 million deal that landed a AAA rating from Moody’s and helped open international doors.

MONEYME (ASX:MME) is another name that’s positioned itself to benefit from the demand for securitised consumer loan assets.

MoneyMe finds global fuel for next leg of growth

Nigel Bradshaw, group treasurer and chief investment officer at MoneyMe, has spent the last few weeks speaking with European investors on a non-deal roadshow, and interest is clearly building.

Bradshaw said European and UK investors are paying more attention to Australian ABS now because their home markets have slowed down.

But demand for securitised assets is still strong, so they’re looking to Australia to fill that gap.

“The growth of non-bank lenders in the Australian market is leading to increased issuance volumes, and larger deal sizes in car and asset finance, providing access to asset classes that traditionally have been controlled by the banks,” Bradshaw said.

That’s a key shift.

In addition to stable macroeconomic and regulatory environment, Bradshaw said the Australian ABS market offers relatively strong returns for international investors.

“Higher interest rates in Australia relative to their home markets create attractive yields and add to the appeal”.

Where once MoneyMe relied mostly on local funding, it’s now tapping into global demand to access cheaper and more scalable capital.

MoneyMe completed its first auto loan ABS late last year, with strong international investor interest in the $517.5 million deal.

“55% of the externally placed notes were allocated to new offshore investors, which is essentially unheard of for a debut deal,” Bradshaw said.

MoneyMe has grown its loan book to beyond $1.5bn, with confidence to double that and more in the coming years by expanding both existing and new products.

Timing is everything

The resurgence of ABS comes at an interesting moment.

The RBA has cut rates twice in 2025 – first in February, and again by 0.25% in May, bringing the official cash rate to 3.85%.

Borrowers, who’ve been battered by 430bp of rate hikes since 2022, have started to adjust.

Bradshaw said that MoneyMe’s predominantly variable rate offering is attractive to borrowers looking for savings in a falling interest rate environment.

“Variable rate loans offer the potential to benefit from future rate cuts, with repayments reducing as rates fall,” Bradshaw noted.

MoneyMe, he said, has already passed on both recent RBA rate cuts to customers.

“And as expectations of further cuts continue, we anticipate that consumer appetite for variable rate loans will only grow.”

Private credit’s next chapter?

There’s also a bigger picture forming here, the potential rise of private credit as a mainstream global asset class.

While the US and Europe have been quicker to embrace it, Australia’s now catching up, with the ABS market playing a starring role.

“Growth in private credit has seen strong momentum over the last number of years, both locally and globally,” Bradshaw said.

“While this is likely to continue, the pace of growth will depend on the evolving macroeconomic and geo-political environment, as well as regulatory developments.”

In other words, the tailwinds are there, but the terrain is still shifting.

ASIC is currently working with lenders to shape its approach to private credit, and MoneyMe is part of that conversation.

“MoneyMe is contributing to that dialogue and will continue to engage with the industry and regulators to shape the future of the sector,” Bradshaw said

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.