Australian consumer lending fintech, MoneyMe, has finalised an AU$120 million asset-backed wholesale securitization facility led by $100 million from global investment manager, Fortress Investment Group, and joined with $20 million of bonds issued by corporate advisory, Evans & Partners.
We discussed MoneyMe a few weeks back, as a good example of the innovative new players pressing in on existing lenders with digitally sassy offerings to target market segments. We expect more disruption in the months ahead.
The funding places the fintech in an ideal position to continue capturing an even greater share of the digitally-savvy millennial consumer market over the next 3 to 5 years through an expanded product range, and additional delivery channels.
“A capital investment of this magnitude is recognition of the strength and depth of our value proposition, and an indication of the strong potential for Australian fintechs to capture serious wholesale market funding,” said Clayton Howes, CEO and Co-Founder of MoneyMe.
“A securitization warehouse structure and our institutional-grade treasury function akin to the major banks – combined with advanced automation and personalization capabilities, data-driven product integrity, cutting-edge technology for scalability, and a relatable brand personality – is a sure-fire way for Australian fintechs to attract the interest of global investors.
“This type of validation by a global investment management company, Fortress Investment Group, affirms a funding path that will now allow us to capitalise on growth and market share opportunities where bank branch models are not a natural fit in this digital age.
“As we further increase our independence and position as a mainstay in the improved distribution of consumer finance, we see this validation as a win for Australian fintech as a whole,” continued Clayton Howes.
Evans & Partners, the corporate advisory firm that led the bond issuance, has raised over $1.5 billion since 2008. The bond issued in this transaction is a publicly-tradable security, which investors are attracted to for the stability, yield, and track record of performance in this emerging sector.
The substantial capital injection will be used to fund continued loan book growth and facilitate both the expansion of MoneyMe’s distribution channels, and the launch of a series of niche loan products targeting the lucrative millennial market.
“As the millennial generation ages and gains even greater consumer power with their increasing incomes, their credit needs will also change and mature with them,” continued Clayton Howes.
“Our aim is to be there throughout their credit lifecycle journey, seamlessly delivering real-time finance solutions in the locations and format that allow focus to remain on the consumption experience and not the transaction itself,” concluded Clayton Howes.
