Not sure why they're saying MME is the more risky one. MME have...

Not sure why they're saying MME is the more risky one. MME have also shown that they're increasing the average credit score of the customers.


MME: 718 Equifax
Plenti: 831 Equifax



Wisr: 765 Equifax





Wisr NIM 5%


Plenti NIM 5.2%


MME NIM 13%




Summary:
MME 718 Equifax, 13% NIM
Wisr 765 Equifax, 5% NIM
Plenti 831 Equifax, 5.2% NIM

So MME has the lower average credit score, as the news article says. But MME seems to have a far stronger NIM, which can be used to offset some bad debts, could it not?

From the below quote, statutory profit was $9m for the half. That comes out to about 1.5% PA on the $1.2m loan book. So I guess they have the 13% NIM, and then after removing business expenses and recent levels of bad debts, it falls to 1.5% remaining? So the 1.5% is the leeway, for increases in bad debts (might improve a bit to 2.0% after the PEP interest reduction starts having an impact).

Plenti by comparison seems to have 0.25-1% leeway (depends on how I interpret the article quote). Less than MME. So is Plenti really lower risk? Higher credit scores, but less leeway with margins.