RKT Stock – MoneyMe (ASX:MME) share price rockets 8% on Autopay launch
MoneyMe Ltd (ASX: MME) shares were shooting for the stars on Wednesday after the company launched its latest product, Autopay. By the market’s close, the MoneyMe share price was trading at $1.55 – up 7.64%. By comparison, the All Ordinaries Index (ASX: XAO) ended the day 0.32% lower.
In other news impacting the personal finance company’s shares today, MoneyMe held its investor presentation, which was attended by Fintech Zoom Australia.
Let’s take a closer look at today’s developments.
Autopay launches – MoneyMe share price floors it
The MoneyMe share price was speeding away today after the company announced in a statement to the ASX it had launched Autopay, “a secured vehicle finance solution for dealers”. MoneyMe managing director and CEO Clayton Howes said the company’s latest product would “disrupt” the old broker model.
“In the same way that people look to Afterpay for where they shop, we expect consumers will look to Autopay when they purchase their vehicles,” Mr Howes commented.
Taking an average of 60 minutes, car dealers will be to receive payment for settlement instantaneously, seven days a week, according to the company. At today’s presentation, a MoneyMe employee said the company would use its artificial intelligence (AI) technology, AIDEN, to rapidly assess the creditworthiness of the customer.
MoneyMe already uses AI decision making across its other loan products. The company also advised it will independently assess the valuation of vehicles purchased via its platform using data from the website CarsGuide.
MoneyMe estimates the automotive finance industry to be worth $12 billion in Australia. It expects the market to grow 2% annually.
Autopay is the latest addition to the MoneyMe suite of products and further diversifies the business. The company already provides personal loans, credit cards, real estate expense loans and even financing for scooter purchases. Investors are reacting well to the news, judging by today’s MoneyMe share price moves.
Attended by Fintech Zoom Australia, MoneyMe today gave a presentation to its investors on its current offerings, operations, and plans for the future.
During its presentation, MoneyMe highlighted its sophisticated AI technology and how this helps differentiate it from other lending providers. Built and run entirely in-house, the system uses over 150 data points to instantly assess the creditworthiness of potential customers.
According to MoneyMe, its product is more precise in identifying risk than competitor Equifax.
“At the beginning of the pandemic [MoneyMe] was able to quickly adapt to the evolving situation,” Mr Howes exclusively told The Fintech Zoom.
Mr Howes provided an example of how the system was able to quickly pick up those employed in the hospitality and tourism sector as being at heightened risk. He said that, to this day, hospitality and tourism employees are flagged by the system because of their extra exposure to economic uncertainty brought about by COVID-19 .
“Big lenders say it will take them 6 months to reassess. We’re a small company, we don’t have 6 months.”
Mr Howes and MoneyMe CFO Neal Hawkins also stated that the company was in a good position to handle unforeseen events.
“[During COVID] unemployment would have needed to be around 30% for us to be in serious trouble,” Mr Howes said.
Mr Hawkins, similarly, was upbeat, telling this reporter, “We are a highly diversified company. We don’t rely on a few big borrowers to prop us up.”
MoneyMe share price snapshot
Over the past 12 months, the MoneyMe share price has increased by 98.72%. Only two days ago, MoneyMe released its Q3 results. Originations were at $108 million – a 57% increase on the last period and a 111% jump on the prior corresponding period. Revenue increased 25% to total $13 million for the quarter.
MoneyMe has a market capitalisation of around $247 million.
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