MONEYME’s Shift to Secured Lending Cuts Credit Losses Amid Rising Competition

Robust Loan Growth and Capital Infusion

MONEYME has demonstrated significant momentum in its second quarter of fiscal 2025, reporting a 21% increase in its loan book to $1.4 billion. This growth is largely driven by a 54% year-on-year rise in loan originations, reaching $233 million for the quarter. The company attributes this surge primarily to strong demand for its Autopay product, which continues to be a strategic growth driver.

Alongside this expansion, MONEYME secured substantial growth capital, including a $125 million corporate debt facility with iPartners and a $517.5 million asset-backed securities (ABS) transaction. These funding milestones not only reduce the company’s cost of funds but also enhance its lending capacity, positioning MONEYME for further capital-efficient growth throughout 2025.

Strategic Shift to Secured Lending Strengthens Credit Profile

A notable feature of MONEYME’s recent performance is its strategic pivot towards secured lending, which now constitutes 60% of the loan book, up from 48% a year ago. This shift has contributed to an improved credit profile, with the average credit score rising to 778 and net credit losses declining to 3.7%, down from 4.6% in the prior comparable period.

While revenue remained stable at approximately $50 million, the net interest margin moderated to 8%, reflecting the lower risk and cost profile of secured assets. Management highlights that this evolving loan mix is delivering tangible benefits, including reduced credit losses and more favourable funding terms, which are expected to support margin expansion in the second half of the year.

Technology Enhancements and Product Innovation

Operational efficiency is being bolstered by MONEYME’s investment in technology, notably through the deployment of an internally developed generative AI application. This innovation streamlines customer communications, improving response speed and quality, and underscores the company’s commitment to leveraging technology as a competitive advantage.

Additionally, MONEYME is advancing the development of a revamped credit card product, slated for launch in calendar year 2025. This new offering is expected to diversify the loan book further and contribute to medium-term growth and returns, complementing the existing portfolio of personal and car loans.

Outlook and Market Positioning

Looking ahead, MONEYME remains focused on measured, capital-efficient growth, leveraging its strengthened funding position and the anticipated benefits of potential Reserve Bank of Australia cash rate cuts. The company’s expanded funding facilities, combined with its strategic shift towards secured lending and product innovation, position it well to capture growth opportunities in the evolving digital lending landscape.

CEO Clayton Howes emphasised the company’s momentum and strategic direction, noting that the combination of strong originations, improved credit quality, and enhanced funding capacity sets a solid foundation for sustained growth and shareholder value creation.