With Autopay, MoneyMe is looking to ‘change the game’ in the automotive finance market
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MME expects Autopay to be a ‘huge driver’ of new loans amid broader growth across the business.
Fresh off a huge set of quarterly results for March, consumer finance platform MoneyMe (ASX:MME) had more strong news flow for investors this morning as it announced the launch of a key new product channel.
The company is now live in the market with Autopay – a same-day, drive-away lending solution for secured vehicle finance.
With its flagship new product, MME is positioning to take a material slice of Australia’s $12bn automotive finance industry, which is undergoing structural shifts as big banks move away from the space.
Leveraging its existing Horizon technology platform, MME will provide direct access to Autopay for vehicle dealers and brokers.
Accompanying its launch in the market, MoneyMe already has more than five dealerships integrated onto the platform for immediate use.
For vehicle merchants it’s a “game-changer”, MME CEO Clayton Howes said, which provides a same-day settlement solution that can be processed for customers inside one hour.
“If you look at the market right now, (settlement) is a process that usually takes days,” Howes said.
“So this platform gives dealers a distinct sales advantage, because the shopping experience for customers has been expedited.”
Howes said MME is also bringing Autopay to market following an extensive period of product development that gives it best in-class speed and a secure, intuitive customer experience.
The platform has the capacity to deliver a “same-day settlement experience, processed on average in 60 minutes, every day of the week”, MME said.
And it leaves MME ideally positioned to build market share in the automotive finance sector, where fintech platforms can generate high rates of growth as banks step back from customer-facing operations into wholesale funding roles.
Speaking with Stockhead, Howes highlighted the strength of that market opportunity from MME’s perspective.
“If you think about our Q3 update, we had record-high loan originations of $108m, and that didn’t even include automotive loans,” Howes said.
“So now our addressable market expands substantially, and we’ve got an opportunity to make automotive finance a massive driver of our top line growth.”
And as its growth accelerates, MME’s business model creates a positive feedback loop where funding costs reduce as a percentage of the loan book, which in turn flows through to higher net profits.
It adds up to an exciting new phase for the business as momentum continues to climb.
“With an addressable market of circa $12bn, a strong customer use case and our ability to quickly assess and price credit worthiness, we expect Autopay to be a key driver of MoneyMe’s growth,” Howes 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.