Company Interview / AI boosts MoneyMe’s bottom line

Key points:

Strong quarterly growth with loss rates dropping to 3.4%Generative AI and the Aiden platform enhance credit risk management and operationsMastercard principal issuer status to boost new credit card strategyTarget customer focus on 700-750 credit scores for balanced risk and returns

David Wright, CFO of MoneyMe (ASX:MME) highlights a robust quarter, focusing on its tech-first strategy, with the adoption of generative AI to improve operational efficiencies. Wright states strong growth has been achieved with a growing loan book, steady net interest margin (NIM), and improved credit performance as loss rates decrease to 3.4%. Wright says operating cash profit has exceeded expectations at $24 million, signalling positive momentum and reinforcing MoneyMe’s commitment to maintaining a high-quality credit book.

The introduction of AI, particularly MoneyMe’s ‘Aiden’ system within its Horizon platform, continues to refine underwriting and credit decisioning. Wright points to improved operational efficiency and enhanced customer service through real-time account information with minimal human intervention. This, in his view, strengthens MoneyMe’s competitive position. The company’s recently acquired principal issuer status with Mastercard is described as significant, paving the way for a new credit card offering, supported by Episode Six’s technology, to further diversify MoneyMe’s lending products alongside auto finance and personal loans.

Wright indicates a focus on lending to customers in the mid-to-upper credit spectrum, targeting scores between 700 and 750, to balance book quality and risk-adjusted returns. He outlines a positive outlook, expecting continued growth, competitive pricing, and reinforced brand presence across the market.