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MONEYME LIMITED - Corporate Spotlight

Powering personal loans and a digital Mastercard, our advanced technology platform... Powering personal loans and a digital Mastercard, our advanced technology platform provides highly automated customer experiences and personalised risk-based pricing that results in fairer and lower-cost credit for you.More

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Corporate Spotlight

Powering personal loans and a digital Mastercard, our advanced technology platform provides highly automated customer experiences and personalised risk-based pricing that results in fairer and lower-cost credit for you.
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MME BOLSTERS MAJOR BANK FUNDING BY $50M

MME POSTS HALF-YEARLY PROFIT

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MoneyMe (ASX:MME) posts half-yearly profit while holding off takeover bid

Finance

ASX:MME   
MoneyMe Limited (ASX:MME) - Managing Director & CEO, Clayton Howes - The Market Herald
Managing Director & CEO, Clayton Howes

  • MoneyMe (MME) is up on the ASX this morning after revealing record loan originations over a profitable first half of the 2021 financial year
  • The digital loan specialist today revealed $114 million in originations over the half-year — 21 per cent higher than the same period in 2019
  • Moreover, MoneyMe said the run rate for March 2021 quarter originations alone is currently at around $90 million
  • MoneyMe posted a $1.3 million profit in the half-year despite COVID-19-induced challenges and important investment into its core technology
  • On top of this, the company said it received an unsolicited and confidential takeover proposal from a "very credible and significant third party"
  • While MoneyMe ultimately declined the offer, it claims the bid implied an equity value for its business at a "significant premium" to its current share price
  • Shares in MME are up just over a per cent this morning to trade at $1.61 per share

MoneyMe (MME) is up on the ASX this morning after revealing record loan originations over a profitable first half of the 2021 financial year. 


The digital loan specialist said in its latest half-yearly financial report originations for the six months to the end of December 2020 came in at $114 million —21 per cent higher than the $95 million over the first half of the 2020 financial year. 


This was driven by sturdy quarter-on-quarter growth, with December quarter originations up 52 per cent on the quarter before. MoneyMe said this growth is ongoing, with the current run rate for March 2021 quarter originations at $90 million. 


Revenue for the half-year grew 12 per cent on the prior corresponding period to $24 million, with further growth expected over the second half the year to reflect MoneyMe's growing originations. 


The company said almost half of all customer originations over the half-year came from returning customers, with 13 per cent coming from the MoneyMe+ buy now, pay later service alongside the ListReady and RentReady products. 


Moreover, MoneyMe was able to maintain a half-yearly profit while navigating challenges created by COVID-19 and investing in building up and growing its Horizon tech platform. 


MME posted a net profit after tax of $1.3 million over the half-year, which is around 70 per cent below the prior corresponding period's $4.3 million profit. 


Still, considering fintech giants like Afterpay and Zip Co are yet to turn a profit, MoneyMe's back-to-back profits suggests the company's tech is less reliant on merchants and customer numbers and driven by meaningful customer relationships. 


MoneyMe CEO and Managing Director Clayton Howes said he is "delighted" with the fintech's growth over the half-year. 


"It is exciting to see the new funding warehouse facility delivering significantly lower funding costs and new business origination capacity and our core and more recently launched products resonating to well with Generation Now," Clayton said. 


"The innovation pipeline is continuing at pace as we continue to invest for massive scale and product diversification opportunities," he said. 


And, according to company management, other businesses have noticed the potential of MoneyMe. 


Fighting off buyers?

MoneyMe said over the half-year, it received an unsolicited and confidential acquisition proposal from a "very credible and significant third party". 


While MoneyMe did not specify who lobbed the bid, the company said the proposition implies an equity value for MoneyMe at a "significant premium" to its current share price. 


It cost MoneyMe around $900,000 to review the proposal, but MME ultimately decided not to sell out to a big company too early. 

At the end of December 2020, MoneyMe had roughly $28.6 million in cash and cash equivalents on hand, with $154.3 million in net customer receivables. 


Shares in MME are up 1.07 per cent at 11:37 am AEDT to trade at $1.61 per share. The company has a $273 million market cap.


Read the full article on The Market Herald here.

MME BOLSTERS MAJOR BANK FUNDING BY $50M

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MoneyMe (ASX:MME) bolsters major bank funding facility by $50M

Finance, Technology

ASX:MME  
MoneyMe (ASX:MME) - CEO, Clayton Howes - The Market Herald
CEO, Clayton Howes

  • MoneyMe (MME) has extended a senior warehouse facility with an Australian Big Four bank by $50 million ahead of its upcoming half-yearly report
  • The digital lender has extended a senior funding commitment with Westpac, initially signed in September 2020, from $100 million to $150 million
  • The initial facility significantly cut warehouse funding costs for MME, and today's extension has the same terms as the September deal
  • The funding extension is a major vote of confidence for MoneyMe's tech and credit quality from the major Australian bank
  • It gives the company more runway for growth and stronger business economics even as it maintains the ability to keep prices for customers low
  • Shares in MoneyMe are trading 3 per cent higher this morning at $1.54 per share

MoneyMe (MME) has extended a senior warehouse facility with an Australian Big Four bank by $50 million ahead of its upcoming half-yearly report. 


The digital lender said the funding commitment signed with Westpac in September 2020has been bolstered by 50 per cent, with senior funding increased from $100 million to $150 million. 


According to MoneyMe, the initial two-year, $167 million facility was a significant reduction in warehouse funding costs for MME. 

The facility has a rate below 3.95 per cent per year plus the bank bill swap rate (BBSW) on a full-drawn basis — taking combined warehouse loan asset funding costs to less than 5 per cent per year plus BBSW.


Under the terms of the deal, Westpac will provide senior funding, while the Australian Office of Financial Management (AOFM) will provide mezzanine funding. 


Today's increase in senior warehouse commitments from Westpac is on the same terms as the initial funding deal from September. 


MoneyMe Managing Director and CEO Clayton Howes said the company is "delighted" to have had a successful partnership with such a major bank extended. 


"The increased commitment in MoneyMe's warehouse facility is outstanding news and stems from exceptional growth in high-quality loan originations," Clayton said. 


"It gives us both funding and confidence to meet the increasing demand from Generation Now by creating innovative products that resonate with them," he continued. 


MoneyMe offers a range of low-cost, digitally-based loan products and credit cards to consumers. 


The company's tech works to cut out the middle-man and replace traditional loan brokers by using artificial intelligence when approving loan applications. This means the whole application process takes just five minutes for consumers and, given the digital nature of the business, can be completed anytime and anywhere. 


Today's extended loan facility is a major vote of confidence in MoneyMe's business model, originations momentum, and credit quality from the major Australian bank. 


For MoneyMe, the extended facility gives the company more runway for growth and stronger business economics even as it maintains the ability to keep prices for customers low.



Read the full article on The Market Herald here.


MME SIGNIFICANT GROWTH IN Q2 FY21

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MoneyMe (ASX:MME) sees significant growth in second quarter

Finance

ASX:MME   
MoneyMe Limited (ASX:MME) - Managing Director & CEO, Clayton Howes - The Market Herald

Managing Director & CEO, Clayton Howes

  • Fintech MoneyMe (MME) has continued to grow financially during FY21's second quarter
  • The company said loan originations for the quarter came in at $69 million, which 52 per cent higher than those delivered in Fy21's first quarter
  • At the end of December, personal loans represented 54 per cent of MoneyMe's total loan book
  • Notably, MoneyMe's revenue hit $11.7 million during the December quarter

Fintech MoneyMe (MME) has continued to grow financially during FY21's second quarter.


The fintech reported its loan originations for the December quarter came in at $69 million, which is 52 per cent ahead of FY21's first quarter. Notably, MoneyMe's December loan originations hit$25 million — a new record. However, January is looking to beat that figure, with over $27 million in loan origination volume expected. 


Origination is the process by which a borrower applies for a new loan and a lender processes that application. 


At the end of December, personal loans represent 54 per cent of MoneyMe's loan book, with an increasing average loan amount and higher credit-rated borrower. 


Notably, MoneyMe's revenue hit $11.7 million during the December quarter. 


The group says there is an increased market opportunity as it expands its product range to attract new customers. 

CEO and Managing Director Clayton Howes is pleased with MoneyMe's results for the period. 


"The 52 per cent increase in origination volume reflects exceptional profitable growth and it is exciting to see the new funding warehouse facility delivering a step change to funding costs and increased capacity for growth," he said. 


"With our core and more recently launched products resonating so well with Generation Now, the innovation pipeline is continuing at pace as we continue to build for massive scale and product diversification opportunities," he added. 


Read the full article on The Market Herald here. 

MME THE SUCCESS OF TECH-FOCUSED LENDING

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MoneyMe (ASX:MME) and the success of tech-focused lending

Sponsored

ASX:MME   
MoneyMe (ASX:MME) - CEO, Clayton Howes - The Market Herald

CEO, Clayton Howes

  • ASX-listed fintechs are finding success in the increasingly crowded Australian market by focusing on technology
  • As they automate operations and move away from traditional brick-and-mortar style banks these businesses are able to slash overheads
  • One of the companies to engage this model is online credit business MoneyMe (MME), which offers its customers fast, easy access to personal loans and credit
  • MoneyMe's focus on technology has allowed the company to cut out the traditional middle-man in lending — the loan broker
  • Its low overheads have also allowed the company to invest back into itself, increasing its offering and attracting a high number of repeat customers
  • MME's technology focus, low cost of lending, and high rates of customer satisfaction have primed the fintech stock for growing future success
  • Shares in MoneyMe are trading at $1.42 each on December 15

As more and more ASX-listed fintechs join the increasingly crowded lending market, a key qualification has emerged for determining success — being tech-focused.


Lenders are moving operations online and away from the brick-and-mortar set-up of traditional banks and other credit institutions. By doing this, a company can slash its overhead costs and invest its savings back into its own growth.


One of the companies which have found success from this tech strategy is MoneyMe, a digital credit business which offers an ever-growing range of different loan products and credit cards to consumers.


By using technology to lower its operating costs, the company has been able to increase its revenue at a time when many other lenders are struggling.


It’s not a great time to be a bank

Not only is the lending market becoming more crowded, and as a result more competitive, but consumers are increasingly moving away from traditional methods of lending.


Data from the Reserve Bank of Australia shows in the last few years consumers have turned their back on personal loans in favour of other forms of credit.


The decline has been linked to the Federal Government's Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry which found some consumers were being heavily taken advantage of.


The RBA also believed more people turned to mortgages offset and redraw accounts, which act as a line of credit, because these loans are attracting very low interest rates in line with the Reserve Bank's own cash rate.


It's likely the buy now, pay later market has also encroached on number of the personal loans and credit cards being issued in Australia, as evidenced by several of the big banks' decision to launch their own zero interest personal credit options.


With consumers looking for more flexible lending options, how do ASX-listed businesses compete for a slice of this lucrative business?



The Ferrari of loan approvals, leaving other lenders in the dust

For MoneyMe, the answer has been simple — reduce its overhead costs and invest that money back into its own products and technology.


During the 2020 financial year, the business managed to spend a restrained $1.08 million on property, plant and equipment costs.

It’s not just low overheads, though — MoneyMe has also found success through its proprietary technology, which works to cut out the middleman and replace the traditional loan broker.

Source: MoneyMe and NAB


Anyone interested in signing up for an MME loan or credit card will have their application processed through the company’s Horizon Technology Platform using artificial intelligence.


This technology basically consumes data from multiple sources — such as credit bureaus or financial institutions — and then uses artificial intelligence to make an informed decision on whether the customer should be approved for a loan.


The whole application process takes around five minutes to complete, and, most importantly, can be done anytime and anywhere as it is highly automated.


This tech-focused style of application has dominated loan originations, with MoneyMe estimating more than 80 per cent of its loans come from automation, while 93 per cent of all payments are also processed automatically.


CEO Clayton Howes said MME was built for tech-savvy consumers in mind and its one of the founding pillars of the company's success to date.


"A key part of our value proposition is our strong focus and commitment to delivering innovative and tech-driven experiences to customers throughout their credit life-cycle," he explained.


Along with low overheads and an automated loan process, MoneyMe also had lower debt funding costs in its sights.


To achieve this, the fintech stock signed a $167 million warehouse funding facility with leading big-four bank Westpac (WBC).


The new facility would help MME significantly reduce its debt funding costs to below 3.95 per cent per annum, plus the bank bill swap rate (BBSW), on a fully drawn basis.


Combined with its other warehouse facility, the company planned to reduce its funding costs to below 5 per cent per annum plus BBSW — well down on the 11.4 per cent rate it was carrying at the end of FY20.


Less than two months after signing the Westpac loan deal, MoneyMe achieved its goal — reporting it had lowered its debt funding costs to 4.8 per cent after receiving an additional $57 million in mezzanine funding and refinancing its Velocity warehouse.



Faster approvals, faster growth in customer base

Not content to rely on its technology and low-cost lending operation, MME has also been investing heavily in diversifying its own personal loan and line of credit offerings.


The thought behind the strategy is that in order to remain successful, the company needs to retain its customers by offering them options which suit their lifestyle and current financial situation.


It’s a move which is already beginning to pay off, with 35 per cent of MME's current sales coming from returning customers.

Among MoneyMe's new offerings is an extension to the company's maximum personal loan amount. It increased to $50,000 in September after MME received the green light from a new warehouse facility.


It's able to offer its loans with rates as low as 6.25 per cent per annum, well below the Australian average variable and fixed rates for personal loans, which come in at 14.41 per cent and 12.42 per cent, respectively.


Additionally, the company has also branched into the 'pay later' market, targeting businesses and real estate agents through its ListReady and RentReady products.


A standout among peers

The unwavering focus on innovation, technology and customer satisfaction has made MoneyMe a standout among the crowded fintech market.


The company has enjoyed increases in growth, with MoneyMe announcing that its October originations were up 8 per cent compared to September, totalling $19.3 million.


That's the highest originations the fintech stock has recorded since January, before COVID-19 decimated the economy.


It's also posted strong profits for FY20, including a net profit after tax of $2.8 million — a huge increase from the previous year's loss of $1.1 million.


Revenue has followed the same trajectory, rising from $31.9 million in FY19 to a solid $47.7 million in the 2020 financial year. That latest figure is already on-track to be eclipsed this financial year, with MME posting a first-quarter revenue of $12 million.


However, MoneyMe doesn't just measure its success in financial metrics, the company also believes increasing customer satisfaction is key to long term growth and profitability.


At the end of September, the company boasted a net promoter score of 75 plus and a 4.8 out of 5-star google review average. 

With a strong tech-focused strategy in place, MoneyMe is able to effectively target and grow its customer base by offering low-cost, simple lending solutions.


Shares in the rising fintech stock are trading at $1.42 on Tuesday, December 15.


Read the full article on The Market Herald here. 

MME FURTHER FUNDING COST REDUCTIONS

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MoneyMe (ASX:MME) announces further funding cost reductions

Finance

ASX:MME    

MoneyMe (ASX:MME) - CEO, Clayton Howes - The Market Herald

CEO, Clayton Howes

  • Fintech stock MoneyMe (MME) has announced its debt funding costs have reduced to 4.8 per cent following a refinancing of its funding facilities
  • The changes include adding the Australian Office of Financial Management (AOFM) $58 million mezzanine funding into the new Major Bank warehouse 
  • It also includes refinancing of the existing Velocity warehouse to bring MME's total funding capacity to $227 million
  • The company has also expanded its customer base to target higher loan transactions and customers with lower personal loan pricing
  • Additionally, MoneyMe revealed it had recorded its best month for originations since January this year

MoneyMe (MME) has announced its debt funding costs have reduced significantly following a refinancing of its funding facilities.


The changes have allowed the fintech stock to successfully lower its funding costs down from 11.4 per cent in June to 4.8 per cent at the end of November.


The company also believes the lower debt funding costs will in turn allow MME to further drive balance sheet growth.


Refinancing & customers

The refinancing by MoneyMe includes adding the Australian Office of Financial Management's (AOFM) $58 million mezzanine funding into its new major bank warehouse.


It also involved refinancing the existing Velocity warehouse to bring MME's total funding capacity to $227 million, with that figure likely to grow alongside loan assets.


“Fully realising the step change reduction in its cost of funding is a truly fantastic and exciting landmark achievement for the MoneyMe Group," MoneyMe’s Managing Director and CEO Clayton Howes said.


"We welcome the AOFM as a mezzanine debt investor and look forward to fully leveraging the lower cost of funds and capacity from the new Major Bank warehouse funding facility to further grow and diversify our balance sheet to meet
the needs of Generation Now," he added.


Along with the changes to its funding facilities, MoneyMe has revealed it will expand its customer base.


Specifically, the company said it had "leveraged its risk-based pricing model to selectively lower personal loan product pricing to support growing the customer base, target higher-value customers and higher loan transaction values."


The change follows MME's decision to increase the maximum personal loan amount to $50,000 in September this year.


Originations

MoneyMe's net interest margin is expected to be maintained following the pricing reductions, because of the related reductions in the cost of funding. 


The company also believes the pricing change will result in increased originations from "higher credit quality consumers" which in turn will grow its portfolio's average Equifax score.


MoneyMe's originations have already grown by 8 per cent in October to total $19.3 million — the highest level of originations since January 2020.


At the end of October, the company said its gross loan book totalled $145.1 million — up 30 per cent year-on-year.


MME GROWS LOAN BOOK IN Q1 FY21

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MoneyMe (ASX:MME) grows loan book in Q1 FY21

Finance

ASX:MME 
 

MoneyMe (ASX:MME) - CEO, Clayton Howes - The Market Herald

CEO, Clayton Howes
Source: Newcastle Herald

  • Things are looking up for MoneyMe (MME), which recorded strong lending growth over FY21’s first quarter
  • The lender saw its loans rise sharply in September, resulting in a 30 per cent increase on the previous month’s originations
  • More broadly, the financial stock’s loans grew by 39 per cent compared to FY20’s final quarter
  • MME also posted a record $12 million in revenue in FY21’s opening quarter — an 18 per cent increase on the previous corresponding period (PCP)
  • The business has also increased its credit limit to $20,000, thanks to a new $167 million warehouse funding facility set up by Westpac (WBC)



Things are looking up for MoneyMe (MME), which recorded strong lending growth over FY21’s first quarter.


The lender saw its loans rise sharply in September, resulting in a 30 per cent increase on the previous month’s originations. More broadly, the financial stock’s loans grew by 39 per cent compared to FY20’s final quarter.


That meant MoneyMe ended the month with $138.1 million in its loan book — a figure the company believes will grow strongly in the coming financial year.


The non-bank lender also posted record revenue in FY21’s opening quarter. The $12 million result marks an 18 per cent increase on the previous corresponding period (PCP).


Interestingly, the average credit scores tied to MoneyMe consumers are also on the rise. Compared to the PCP, the average Equifax score for MME customers jumped almost 2.5 per cent to hit 637.


The business has also increased its credit limit to $20,000, thanks to a transformative $167 million warehouse funding facility set up by Westpac (WBC).


Speaking to the results, MoneyMe Chief Executive Clayton Howes said he was delighted with the business’ “robust, profitable growth.”


“The 30 per cent increase in originations in September compared to August are a clear reflection of momentum building in new business originations. It is exciting to see the new funding warehouse facility delivering significantly lower funding costs and new business origination capacity and our core and more recently launched products resonating so well with Generation Now,” he said.


“The innovation pipeline is continuing at pace as we continue to invest for massive scale and product diversification opportunities in Australia and overseas. A fantastic first quarter that sets the business up well for further high and profitable balance sheet growth,” Clayton concluded.


On the back of today’s update, MME shares tacked on just under 3 per cent to trade for $1.39 at market close.



Read the full article on The Market Herald here.

FINTECH DISRUPTORS ON THE RISE

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What is warehouse lending, and how does it fuel fintech disruptors?

Special Report




 
  • Despite ongoing economic uncertainty, fintech disruptors are on the rise
  • The combination of finance and technology has become a lucrative space in recent years, creating a pool of hungry, younger players
  • Thus, in order to get ahead, disruptors must both compete and cooperate with their rivals: traditional banks and lenders
  • They do this through warehouse lending, a system which provides emerging fintechs with funding and a critical endorsement
  • So how have buy now, pay later giants like Afterpay (ASX:APT) and Zip Co (ASX:Z1P) used this system to their advantage, and which other fintechs are doing the same?




Despite ongoing economic uncertainty, fintech disruptors are on the rise. Lead by buy now, pay later stalwarts like Afterpay (ASX:APT) and Zip Co (ASX:Z1P), this fusion of finance and tech is out to challenge the big banks.


But to get ahead in an increasingly aggressive market, fintech stocks are turning to an unlikely ally: their competitors.


There's a couple of ways a fintech can do this, but warehouse lending has recently emerged as an attractive option, thanks to the secure financing and endorsement it provides growing lenders.


So what's in it for the companies which cooperate and compete with big banking? And which businesses have used this strategy to fuel their growth?


The fintech boom

In recent years, fintech stocks have garnered attention from investors and consumers alike. According to multinational accountant KPMG, global investors poured $25.6 billion into fintech businesses over the first half of 2020.


And while the fusion of finance and tech is a broad banner, it's non-bank creditors which have recently come to the fore. Put simply, they can offer the ease of digital lending outside the parameters of traditional lenders — a key factor in their growing popularity.

As a result, the fintech revolution encouraged new players to join the space. But on the flip side, it also triggered market saturation, leaving some companies vulnerable to merger and acquisition activity. In its fintech trends report, KPMG predicted a spike in fintech consolidation over 2020's second half. 


"Fintech investors are focused on big bets and safer deals right now. This is making it difficult for smaller fintechs, even those with good business models, to raise funding."

KPMG International's Global Co-Leader of Fintech, Anton Ruddenklau


Faced with this 'eat or be eaten' proposition, just how do these companies get ahead?


Another option

While there's a lot of competition in the digital lending space, companies are all peddling the same key message. A smaller fintech wants you to know it's different from big banking — maybe it offers more personalised service, competitive deals, or better technology. In that way, a fintech can position itself in a 'David and Goliath' battle, poised to take on financial giants.


But the way this system works is somewhat paradoxical: to compete with the big banks, fintech disruptors need their backing. That's because the banks have two things emerging lenders don't: money and reputation.


Luckily for the fintechs, there's a way to get both. And that's where a warehouse facility comes in.


What's that?

A fintech can approach a major lender and ask for a line of credit. If approved, a bank will set up a facility which the business can access. They'll use that money to seed their own loan origination and grow their business. 


As more customers borrow from the fintech, this business and the bank can profit off the lending.


In some cases, banks will use the fintech's account receivables as collateral. So if the stock can't pay back its borrowings, the bank can turn to its customers for the money instead. And as a digital creditor's customer base grows, the bank can opt to expand or extend the funding facility.


Not only does the facility provide much-needed capital, but it also acts as a significant endorsement for an emerging business. The backing of a major bank can carry some serious clout. And in the case of BNPLs like Afterpay, the endorsement has paid off.



Afterpay

Afterpay — arguably the world's buy now, pay later leader — had five warehouse facilities at the end of FY20.


Two of these are based in Australia, one is with a New Zealand lender, and the last two are with U.S. banks.


Combined, the two Australian facilities are worth half a billion, while both are set to mature in December 2022. Afterpay holds the covenants with National Australia Bank (ASX:NAB) and Citi, two leading lenders.


Over in New Zealand, Afterpay has a NZ$50 million (around A$46 million) warehouse facility with Bank of New Zealand. That's set to expire in March 2022.


Afterpay's other facilities, based in the states, total US$400 million (roughly A$562 million). These are with Goldman Sachs and Citi, and will expire in December next year and May 2022, respectively.


Curious to see how these facilities impacted the Afterpay share price? Here's a graph which tracks the movement:


Interestingly, Afterpay's NAB facility was set up before it listed on the ASX. And while the company hasn't disclosed the start date for most of these facilities, it's clear the financial endorsement set it up for its recent growth.


Conversely, the bank's backing has also set this BNPL up to weather economic storms. When COVID-19 hit, Afterpay was quick to reassure holders its warehouse facilities were different from traditional debt covenants. And the continued backing of four brand-name banks — three of which are outside Australia — went a long way in steadying nerves.


After the initial market shock subsided in March, investors returned to the BNPL. And since April, it's added roughly $50 dollars to its share price. Afterpay now boasts a $23.8 billion market cap and trades for $84.84 a share.



Zip Co

While Zip Co operates a little differently than Afterpay, it still has warehouse funding. In fact, during FY20, Zip secured a $100 million facility from Victory Park Capital, a U.S.-based investment firm. 


But Zip has also proven it can work alongside the banks in a different way, and it's made this its flagship funding structure moving forward. In 2019, Zip launched the Master Trust — the first of its kind for any BNPL in the world.


At the time, Zip — along with major bank NAB — raised half a billion by selling asset-backed securities to investors. The raise was an upgrade on Zip's initial target — the fintech was originally looking to raise $400 million.


Here's how that affected Zip's share price:

After setting up the raise, Zip used the proceeds to buy a revolving portion of its account receivables debt — the money its customers owe — to keep in the Master Trust. 


Essentially, money coming in from investors is paid back as the customer makes repayments. And as an added bonus, the risk on payment defaults is transferred from Zip to the noteholders.


This buoyed the BNPL stock as COVID-19 shook the local sharemarket earlier this year. And, like Afterpay, the funding facility positioned it for further growth as its customer base boomed.


Now, Zip has gone from a minnow to a unicorn. The fintech is worth over $3.76 billion today, with shares trading for $7.29 —a far cry from the $3.19 before the trust was set up.



MoneyMe

While it may not be a BNPL stock, this fintech has also caught a big bank's eye. Just last month, Westpac (ASX:WBC) created a $167 million warehouse facility for ASX lender MoneyMe (ASX:MME). 


This is a big deal for the digital lender: it's the first facility in its wheelhouse and paves the way for future growth.


"This major Australian bank partnership is transformative for MoneyMe, paving the way for substantial scale into the future," Managing Director and CEO Clayton Howes said.


"This is a significant milestone that provides a step change in our funding costs, increases origination capacity and allows us to better compete on price," he continued.


The deal is still fresh, so investors are yet to see the facility's long term impact on MME's share price. Here's how the stock has traded to date:

Considering the financial turbulence triggered by the global pandemic, the deal's significance is amplified. Moving forward, the backing of Australia's oldest bank will go a long way.


Today, MoneyMe shares are worth $1.50. While it's still trying to climb back to its mid-February high, one thing is clear: the deal has set the company up to grow its beyond 2020.


What's to come?

As stocks across the globe continue to stage their recovery, funding and reputation become even more crucial. With the global pandemic decimating opportunity, it's critical that businesses find new ways to keep afloat.


Smart fintechs will work with their competitors to overcome the hurdles and shine amid the turmoil. And the ones which grow will embrace the endorsement from traditional lenders and head on to bigger things.


Afterpay, Zip and MoneyMe have thrown down the gauntlet. The question remains: Who will be next?



Read the full article on The Market Herald Here

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Investor Update: MME announces $167m funding facility with Westpac - September 2020


ABOUT MONEYME

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ABOUT MONEYME

Visit MoneyMe's Website Here


MoneyMe: Finance the smarter, faster way.

To sum us up, we offer online loans up to $50,000 – and we do it really, really fast.


We understand tech-savvy Australians, who are looking for faster, more convenient, and simpler access to credit direct from their mobiles. And because we’re a bunch of tech-lovers ourselves – we get it, and you!


Our advanced technology platform allows us to provide an outcome in a matter of seconds, with funds sent immediately once approved. On top of that, our smart algorithms allow us to provide personalised, risk-based pricing that results in fairer and lower-cost loans for you.


But that’s all happening behind the scenes. What you’ll actually deal with is a simple-to-use, no bull website, and straightforward communication via emails, texts, and the occasional call. No paperwork, and no fuss.


Every interaction you have with us is a breeze; from rescheduling payments to requesting another loan, we use technology to do all the heavy lifting – and we approach absolutely everything this way.



It's fast, safe and simple

Our commitment free application process takes less than 5 minutes,
with cash sent to your account fast!

Choose between our Personal Loans or Freestyle

Complete our quick application form in less than 5 mins

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Rescheduling repayments

You can reschedule your repayments up to 5 days from the scheduled date, as long as it remains within your original loan term


Self-manage repayments

Additional or early repayments are free! In fact, we prefer if you repay your loan earlier and we won't charge you for it


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1300 371 436 anytime during
business hours.


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(20min delay)
Last
$1.59
Change
0.010(0.63%)
Mkt cap ! $272.5M
Open High Low Value Volume
$1.60 $1.60 $1.51 $519.3K 325.9K

Buyers (Bids)

No. Vol. Price($)
1 7000 $1.53
 

Sellers (Offers)

Price($) Vol. No.
$1.60 762 1
View Market Depth
Last trade - 15.55pm 25/02/2021 (20 minute delay) ?
(live)
Last
$1.59
  Change
0.010 ( 4.22 %)
Open High Low Volume
$1.60 $1.60 $1.59 105000
Last updated 15.53pm 25/02/2021 (live) ?
MME (ASX) Chart
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