MONEYME Boosts Loan Book 27% with AI-Driven Growth and Strong Credit Metrics
MONEYME’s loan book surged to $1.5 billion in 3Q25, driven by a 65% jump in originations and steady revenue, underpinned by improved credit quality and innovative AI deployment.
- Loan book grows 27% year-on-year to $1.5 billion
- Loan originations increase 65% on prior comparable period
- Net credit losses stable at 3.7%, credit score rises to 784
- Funding warehouse upsized to $130 million, reducing cost of funds
- Generative AI enhances customer service and credit decisioning
Robust Growth Amid Strategic Shift
MONEYME Limited (ASX: MME) has reported a strong third quarter for FY25, with its loan book expanding to $1.5 billion, marking a 27% increase compared to the same period last year. This growth was fuelled by a 65% surge in loan originations, reaching $227 million, reflecting the company’s successful focus on secured lending and higher credit quality assets.
Despite a slight seasonal dip in originations from the previous quarter, revenue remained resilient at $53 million, consistent with the prior comparable period and up 6% quarter-on-quarter. This stability underscores MONEYME’s ability to maintain earnings while transitioning its portfolio towards lower-risk secured loans, which now constitute 61% of the loan book, up from 51% a year ago.
Credit Quality and Profitability
Credit performance continues to impress, with net credit losses steady at 3.7%, down 1.1 percentage points from the prior year. The average credit score of borrowers improved to 784, indicating a higher quality customer base. These metrics support MONEYME’s strategic emphasis on risk mitigation and sustainable growth.
Operating cash profit is on track for approximately $20 million for FY25, reflecting disciplined cost management and efficient capital deployment. The company’s net interest margin (NIM) held steady at 8%, despite a 2% year-on-year decline linked to the shift towards secured lending and improved credit quality.
Funding and Technological Innovation
In a key funding development, MONEYME refinanced and expanded its MME Horizon 2018 Warehouse Trust from $85 million to $130 million. This move not only supports growth in personal loans and credit cards but also delivers a reduced cost of funds, enhancing the company’s competitive positioning in the debt capital markets.
On the technology front, MONEYME is leveraging proprietary generative artificial intelligence (Gen AI) to streamline customer communications and improve agent training. Early applications have already improved operational efficiency, with further AI-driven enhancements planned for credit decisioning and underwriting processes.
Looking Ahead
Management remains focused on expanding product offerings, including the development of a new credit card product, and optimizing funding costs through securitisation market efficiencies. The company is also advancing its ESG agenda, conducting climate scenario analyses and supporting vulnerable communities through charitable partnerships.
CEO Clayton Howes highlighted MONEYME’s commitment to responsible lending and innovation, noting that the company’s digital-first approach and strong credit profile position it well for continued growth in a competitive consumer finance landscape.
Bottom Line?
MONEYME’s blend of disciplined growth, AI innovation, and funding optimisation sets the stage for a transformative FY25 finish.
Questions in the middle?
- How will the new credit card product impact loan originations and revenue mix?
- What measurable benefits will further AI integration bring to credit underwriting?
- How might future RBA rate changes influence MONEYME’s net interest margin and funding costs?