MONEYME’s Credit Quality Gains Could Face Pressure as New Products Roll Out
MONEYME reported a robust start to FY26 with a 26% increase in its loan book and improved credit metrics, driven by strong originations and strategic product expansions.
- Loan book grows to $1.65 billion, up 26% year-on-year
- Loan originations increase 18% to $261 million in 1Q26
- Gross revenue rises 15% to $58 million, supported by secured assets
- Net credit losses improve to 3.1%, average credit score climbs to 796
- Launch of Autopay for private car sales and AI-driven operational enhancements
Strong Growth in Loan Book and Revenue
MONEYME has kicked off FY26 with a compelling performance, reporting a 26% increase in its loan book to $1.65 billion for the first quarter ended 30 September 2025. Loan originations also rose 18% year-on-year to $261 million, underscoring sustained demand across its lending products. This growth translated into a 15% rise in gross revenue to $58 million, reflecting the company’s focus on a balanced portfolio with a higher proportion of secured assets.
Improved Credit Quality and Risk-Adjusted Returns
Credit metrics showed marked improvement, with net credit losses falling to 3.1% from 3.8% in the prior corresponding period. The average credit score of the loan book increased to 796, a 3% uplift, signaling a higher quality borrower base. The secured asset ratio rose to 62%, enhancing the portfolio’s resilience. These factors contributed to a risk-adjusted net interest margin (RNIM) increase to 1.9%, up from 1.5% in FY25, supported by lower funding costs and effective pricing strategies.
Product Innovation and Technology Deployment
MONEYME continues to leverage technology to drive growth and operational efficiency. The launch of Autopay into the private car sales market expands its secured lending reach beyond dealerships, tapping into a segment that accounts for over half of used car sales in Australia. Enhancements to risk-based pricing models have improved yield and originations for both Autopay and personal loans. Additionally, the company has increased the maximum unsecured personal loan amount to $70,000 to meet rising customer demand.
AI integration is a key strategic focus, with the deployment of AI-powered email routing and automation of operational workflows improving customer service speed and quality. These innovations position MONEYME well to scale efficiently as it prepares for a credit card product launch in the second half of FY26.
Strategic Outlook and Capital Position
CEO Clayton Howes highlighted MONEYME’s robust capital position and ample liquidity, enabling the company to pursue its medium-term growth ambitions confidently. The firm’s five strategic priorities emphasize technology leadership, maintaining credit quality, optimising funding costs, expanding product offerings, and embedding strong ESG practices. The recent Fitch ratings upgrade on securitisation notes further validates the strength of MONEYME’s asset performance and outlook.
As MONEYME advances its digital-first lending model, the combination of strong financial results, product innovation, and technology-driven efficiencies suggests a promising trajectory for the remainder of FY26.
Bottom Line?
MONEYME’s strong start to FY26 sets the stage for continued growth, but execution on new products and AI initiatives will be critical to sustaining momentum.
Questions in the middle?
- How will the upcoming credit card launch impact MONEYME’s revenue and risk profile?
- Can MONEYME maintain its improved credit quality amid broader economic uncertainties?
- What role will AI-driven automation play in scaling operations without increasing costs?
