MONEYME CFO speaks with Proactive at the ASX SMIDcaps Conference

With me now live from the ASX Small Mid-Caps Conference is Money Me CFO, David Wright.

Money Me is an AI-powered digital lender transforming the way Australians access credit.

Its platform combines artificial intelligence, data and automation to improve credit decisioning, customer experience and operational efficiency across its lending products.

David, nice to meet you.

Nice to meet you, Lauren.

Now, MoneyMe positions itself as offering bank-beating rates and near real-time lending decisions.

Can you tell us more about what MoneyMe does and how it's different from a traditional lender?

Yeah, exactly. So the the industry, particularly on the on the bank side, it's we've had a structural tailwind over over a number of years where banks have pulled away from the more consumer traditional products outside of um residential mortgages.

And so it's really created an opportunity for the likes of us to to get in there and and provide uh products that uh uh cheaper, uh more efficient, um you know, real-time settlement, etc. And that you can really see that tailwind has had an impact in the industry, but definitely for us um overall with a 34% increase year-on-year in the book.

Um and we continue to to to strive forward in the technology and offer a better user experience um each release that we do.

Now, your loan book grew 34% to 2.1 billion in FY26 with gross revenue up 20% to 249 million.

What's driving that growth and how sustainable is that pace into FY27?

Yeah, definitely. So as I spoke about the the structural shift, that that's that's helped a lot, but really a focus with us and and again it's around the AI and the technology and the automation we've used, uh risk-based pricing that was implemented a while back, um and also further investment into the into the direct space has really both grown the book from a what's um demand, I guess, through the broker and but also through direct.

And so we've seen a massive growth in the the personal loan space where that actually grew about 52% year on year. And so that's been a large driver. Um, the personal loan space is reasonably competitive, but the banks just not focused on it. So it's really given that opportunity.

The cars continue the vehicle uh finance continues to grow. Um it's quite a lot more competitive, um but we have been able to grow in that space as well. Um, but and credit cards watch this space.

Now net credit losses actually improved to 2.4% despite the loan book growing 34%. How are you managing credit quality while scaling so quickly amid a challenging macroeconomic environment? Hmm.

So part of that relates to where we've come from. We we originally were a sort of a high yielding um higher return book that really couldn't scale. And we shifted away from that to and move up the credit spectrum, is one way of putting it.

And so higher scores, more home owners, that kind of thing which basically meant that, you know, your losses come down significantly. It takes a while for that to happen. So we've been we've been riding that decline year on year, um and that's been great.

But we continue to focus on originating the right right loans with the right people. Um and we've got a lot of tech in in that space as well and ongoing upfront monitoring um outside of just using AI within our underwriting itself as well as um the existing automation and and rules and and credit policies we've got in place. Continued monitoring is key. Um and you know, one of the things particularly in digital space that we, you know, get concerned about is fraud and we're on top of uh the the impact um that could have.

Um and that's really been advantageous to us.

You've guided to normalize NPAT of break even to 7 million in FY27. What's the path to full profitability and why should new investors back money me today?

Yeah, comes into operating leverage. So um our loan book at a particular size, which we've actually surpassed now, means that every single dollar of loan that we put out the door, pretty much goes to the bottom line. And so it's a very powerful thing in the lending space.

Um so like I said, we've hit that point. And so outside of continued investment in marketing, um, you know, to get that business in instead of commissions that you you might pay through the broker network, uh or dealer network, um it it's the same kind of cost, but really it comes down to outside of that that marketing, it's, yeah, every single dollar we put out the door is going to the bottom line.

So it's the trajectory we're on and we've actually put that in our in our presentation, but we we've really got this ongoing trajectory that that clearly shows that what we're doing even with spending on the infrastructure for the new credit cards, etc. is that we are going to be profitable. And so we're reinforcing our guidance in that in that space.

David, thanks for your time.

Thanks very much, Lauren.