Moneyme Ltd. · ASX:MME
Moneyme — Investor Day (May 2022)
58 slides from Moneyme's investor day presentation, May 10, 2022
Slide 1: ASX Announcement: Investor Showcase Presentation
MoneyMe Limited (ASX:MME) 10 May 2022 For personal use only ASX Announcement INVESTOR SHOWCASE PRESENTATION MoneyMe Limited (ASX: MME) (“MoneyMe” or “Group”) attaches a presentation made at MoneyMe’s Investor Showcase being held today at its Sydney office. Authorised on behalf of the MoneyMe Board a
Slide 2: Investor Showcase 10 May 2022
For personal use only Investor Showcase 10 May 2022 moneyme.com.au Copyright 2022 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218
Slide 3: Agenda for the day
Agenda for the day For personal use only 1 Welcome 2 Step Change 3 Customer Ecosystem 4 ESG 5 Credit Management 6 Technology & Innovation Page 1 | MONEYME Investor Day 2022
Slide 4: Step Change
For personal use only Step Change
Slide 5: Incredible scale through tech innovations
Incredible scale through tech innovations For personal use only 46% Secured Customer Revenue Originations receivables FY22 YTD2 FY22 YTD2 Was $333m at 30 June 2021 Was $58m for FY21 Was $384m for FY21 $341m $1.2b1 $83m $782m 54% 3Q22A originations Unsecured 1. $1.2b excludes SocietyOne P2P loan book
Slide 6: MONEYME's significant transformation in the past year
MONEYME’s significant transformation in the past year For personal use only 1 • Record predominantly organic revenue of $83m YTD FY22, from $39m for the same period FY21. A 113% increase, and only includes S1 revenue from the 15th of March $83m revenue; • Record contracted revenue of $345m, up 94% o
Slide 7: 3Q22 financial highlights
3Q22 financial highlights Cash Profit for 1H22: Record organic receivables growth, profitable returns, sound credit & book quality $10m For personal use only Gross customer receivables ($m) 1 Total revenue ($m) Average Equifax score 695 398% 1,159 141% 83 3Q21 to 3Q22 3Q21 to 3Q22 3Q22 672 58 $35m 4
Slide 8: Decreasing funding costs
Decreasing funding costs For personal use only Decreasing funding cost (%) FY23 • Planned ABS Transaction 12% 11% • Bigger scale loan book to achieve economies of scale • Secured assets growing as a proportion of book to improve margins 5% 5% • SocietyOne ABS deal completed at blended margin of <2%
Slide 9: Game changing innovation in the auto sector
Game changing innovation in the auto sector With Autopay’s high automation, dynamic pricing and best-in-class speed that offers secured vehicle For personal use only finance that settles within 60 minutes, 7 days a week, dealers and brokers are rapidly signing up to access the product and the Autopa
Slide 10: Customer Ecosystem
For personal use only Customer Ecosystem
Slide 11: Timing is everything
For personal use only Timing is everything Page 9 | MONEYME Investor Day 2022
Slide 12: Our objective: #1 challenger to the major banks
Our objective For personal use only #1 challenger to the major banks Page 10 | MONEYME Investor Day 2022
Slide 13: Customer ecosystem key points
For personal use only 1 Credit Score customer acquisition tool with ~200,000 people 2 A solid broker channel for diversification and distribution 3 Bank accounts for everyday spending and saving 4 Customer base skews more female and is 10 years older 5 30% of customers are home owners Page 11 | MONE
Slide 14: The credit lifecycle and our ecosystem
The credit lifecycle and our ecosystem For personal use only Credit Score Bank Account Turning 18 • Establishing • Everyday • Leaving school Car upgrade via • Financial Selling house financial transactions dealer or broker control • Starting uni stability • Holidays • Simplicity • First car • Starts
Slide 15: An app ecosystem powered by customer centric tech
An app ecosystem powered by customer centric tech For personal use only No bricks and mortar branches, no salespeople. Low overheads. • Visibility and control = Self service • Opportunity = Cross selling • Communications = A connected customer Page 13 | MONEYME Investor Day 2022
Slide 16: Diversified distribution at scale
Diversified distribution at scale For personal use only Sophisticated B2B2C distribution strategy across verticals Current B2B2C make up March = Large addressable markets 72% B2B2C make up of originations with high growth potential 6 month ago = 49% Strong portfolio of high quality engaged partners
Slide 17: Diversified distribution at scale
Diversified distribution at scale For personal use only ListReady real estate channel: Personal Loan Broker Channel Autopay Broker + Dealership Channel • 3,500+ agents – some of • 400+ brokers offering Australia's best the MONEYME Personal Loan • 1,300+ brokers and dealers offering Autopay • Exclusi
Slide 18: A brand that stands out
A brand that stands out To be the #1 non-bank challenger to the major banks we need a strong identity For personal use only Page 16 | MONEYME Investor Day 2022
Slide 19: We're painting the town green
We're painting the town green For personal use only Page 17 | MONEYME Investor Day 2022
Slide 20: A brand for the people
A brand for the people For personal use only At MONEYME, we’re for the everyday ambitious Those with goals, big and small. Positive people with positive purpose. Because money shouldn’t be tricky. It should be an opportunity. At MONEYME, we’re democratizing opportunity. Making it a simple, fast and
Slide 21: ESG: Environmental, Social, and Governance
For personal use only ESG: Environmental, Social, and Governance
Slide 22: Accelerating towards world-class ESG performance
For personal use only ESG Accelerating towards world-class ESG performance Page 20 | MONEYME Investor Day 2022
Slide 23: Governance
Governance Embedding ESG into our Governance framework For personal use only Ensuring our good governance principles and practices are maintained and improved Aligning to Integrating ESG Updating employee internationally considerations into remuneration to recognised ESG business decision include ES
Slide 24: Environmental
Environmental Caring for our planet For personal use only 1 2 3 Measuring our scope 1, 2, Our Autopay carbon offset Exploring green products and 3 greenhouse gas initiative has offset the that reward customers for (GHG) emissions emissions produced from being environmentally over 9 million kms drive
Slide 25: Social
Social Supporting our people For personal use only Community • Helping young people who have been impacted by cancer through our charity partnership with Canteen • Paid community service leave & matching for employee donations to charities • Voluntarily submitted our FY21 Modern Slavery Statement Em
Slide 26: ESG is here to stay
For personal use only ESG is here to stay We are determined to do Our ESG performance will the right thing by our help us win people and planet Page 24 | MONEYME Investor Day 2022
Slide 27: Credit Management
For personal use only Credit Management
Slide 28: Highly regulated credit environment
Highly regulated credit environment For personal use only Highly influenced by data A digital business like ours thrives in this new Increasingly digital / cashless society environment Speed & accuracy Page 26 | MONEYME Investor Day 2022
Slide 29: Future-proofing credit management
Future-proofing credit management For personal use only Use of artificial intelligence and automation in our credit decisioning + collections management processes We have a depth of customer datasets and decisioning models to elevate us in the current credit environment Our systems are Open Banking
Slide 30: Everything in one place: Horizon
For personal use only Everything in one place Horizon: Credit decisioning, payments and collections Page 28 | MONEYME Investor Day 2022
Slide 31: Application journey optimised for data capturing
Application journey optimised for data capturing & seamless user experience For personal use only Autopay dealer (web) App application Repeat customer offers Page 29 | MONEYME Investor Day 2022
Slide 32: Proven technology platform primed for scale
Proven technology platform primed for scale For personal use only Transaction data analysis Initial eligibility Biometric ID assessment 100 1,000 verification Data reference Transactions 40 points categorised Data reference points c. 5-Minute application process Risk assessment Artificial Credit int
Slide 33: Automated in-house payments strategy & workflows
Automated in-house payments strategy & workflows For personal use only The Horizon Technology Platform manages end-to-end arrears workflows to optimise collections outcomes with automated notices (emails, letters), call scheduling, SMS and referrals to external collections agencies. Capabilities inc
Slide 34: Biometrics – ID
Biometrics – ID MONEYME seeks to mitigate fraud risk For personal use only by using Equifax ID tools, including a biometric tool, which includes: 1. Face capture and 'liveness' test 2. Document capture (Licence / Passport) and document check (e.g. recognition of potentially tampered documents or ano
Slide 35: Artificial intelligence
For personal use only Artificial intelligence Trailblazing innovation in credit decisioning: • Building out AI capabilities for >3 years • We have led the industry with AI • Now we have $2bn of originations data, we continue to expand and develop • AIDEN® is our proprietary in-house AI = Artificial
Slide 36: We built AIDEN in-house
We built AIDEN® in-house to unlock the power of Big Data and Artificial Intelligence For personal use only It’s our Full control + Easy + fast to intellectual customisable Data security deploy models property models (we own it) Page 34 | MONEYME Investor Day 2022
Slide 37: AI & automation are at the heart of credit management
AI & automation are at the heart For personal use only of credit management Current Future • Credit Decisioning: Approval or • Customer retention = In-life Decline promotions and awards, rate offers • Offer: Providing pricing and • Increased collections process maximum loan offer automation Page 35
Slide 38: Horizon technology allows automated decisioning
For personal use only Horizon technology Decisioning automatically run against credit history, transaction history, allows automated payment serviceability, and more decisioning Much more efficient and accurate than 98% of credit amount and pricing a human for credit risk - removing human judgement
Slide 39: More touch points than ever across property, retail and auto
We have more touch points than ever, For personal use only across property, retail and auto The more applications we get, the more data we get, the more insights we gain Page 37 | MONEYME Investor Day 2022
Slide 40: Artificial intelligence
Artificial intelligence For personal use only • Decisions with speed, scale, and accuracy Binary rules • Augmenting existing binary rules with strong correlation analyses • Standard approach to manage credit risk • Our edge is our credit decisioning with AIDEN® • Are okay but we wanted to do better
Slide 41: AIDEN
AIDEN ® For personal use only Looks at 500+ data points of each customer to make decisions Data includes demography, employment, bank statements, credit file, and more Decision in less than 1.3 seconds 1 Has capacity to evaluate millions of customers 24/7 1. Average time based on data from April 202
Slide 42: AIDEN AI models are monitored and re-trained
AIDEN ® AI models are monitored and For personal use only re-trained on an ongoing basis: Higher frequency for evolving situations like fraud detection Lower frequency for stable models like credit score model Page 40 | MONEYME Investor Day 2022
Slide 43: AIDEN Credit Score Model
AIDEN® Credit Score Model For personal use only Finds correlation between customer’s profile and their probability of default Equifax Average ATM Employment Residential AIDEN® Repayment Wages score withdrawals length status score * result 438 $10,200 $283 >1 year Own home 825 GREAT 829 $3,600 $634 <
Slide 44: Increased funding and reduced losses
Increased funding and reduced losses1 AIDEN®’s performance speaks for itself. For personal use only Funded amount Write-off amount $96m +5.5% -8.5% $3.5m (+$5m) (-$0.3m) $91m $3.2m Equifax AIDEN® Equifax AIDEN® Sample: Historical $96m funding period 1. Based on loans funded between April to December
Slide 45: AIDEN Credit Score Model for Autopay
AIDEN® Credit Score Model for Autopay MANY MORE DATA POINTS... For personal use only Vehicle Balloon LVR type payment Vehicle We are going to develop the Deposit model amount $ most sophisticated credit decisioning application in the Odometer auto industry Age of reading vehicle Metro vs Vehicle Ext
Slide 46: Technology & Innovation
For personal use only Technology & Innovation
Slide 47: Horizon Technology Platform
Horizon Technology Platform One platform, multiple uses For personal use only Horizon Support scale Efficiency through automation Enhancing credit decisioning Data analytics MONEYME’s cloud-based technology platform Seamless customer Product Security Data protection experience innovation Page 45 | M
Slide 48: Horizon platform: key modules
Horizon platform: Warehouse Funding 8 key modules For personal use only Mobile Payments ` Applications Horizon Referral AIDEN® v Technology Management Platform Communications Originations Underwriting Page 46 | MONEYME Investor Day 2022
Slide 49: Horizon architecture
Horizon architecture Monolithic Microservice For personal use only architecture architecture • Horizon uses microservices architecture • It is composed of many loosely coupled and independently deployable smaller services • Highly maintainable and testable • Organised around business capabilities Pa
Slide 50: Development approach
Development approach For personal use only • Continuous process of improving efficiency and constant activity • Enables the team to adopt faster to updates and development changes • Enables the team to deliver quickly • Deployments are more consistent and smooth Page 48 | MONEYME Investor Day 2022
Slide 51: Key benefits from 100% ownership
Key benefits from 100% ownership: For personal use only 99.95% gold standard We own it, which Can handle multiple uptime means: products We can launch new products while No licensing fees; Personal Loan, Continuing Credit the platform is still running Easy to scale (operational efficiency) Contract,
Slide 52: Case study: Autopay
Case study: For personal use only Autopay • Agile build, for very fast entry to Data security market & monitoring • Built in less than 2 months using Horizon existing modules Cloud-based • Winner of Canstar’s 2022 Innovation Excellence Award Due diligence Automated Underwriting Warehouse Payments Co
Slide 53: Cybersecurity is real and on many varied levels
Cybersecurity is real and on many varied levels For personal use only Top 15 Malware Web-based Phishing Web application Spam attacks attacks Cyber threats DDoS Identity theft Date breach Insider threat Botnets Physical, manipulation Information Ransomware Cyberespionage Cryptojacking damage, theft a
Slide 54: Cybersecurity
Cybersecurity For personal use only To ensure MONEYME is protected and keeps data and people safe we apply industry standards to ensure we are protected. We do this via a layered approach: • At a device level • At an office level • At a group level We use industry standard software that blocks phish
Slide 55: For personal use only
For personal use only Page 53 | MONEYME Investor Day 2022
Slide 56: Important Notices & Disclaimers (1)
Important Notices & Disclaimers (1) For personal use only This presentation has been prepared by MoneyMe Limited (MoneyMe or Company) in connection with the Investor Showcase This Presentation may include certain pro forma financial information. Any pro forma financial information is for illustrativ
Slide 57: Important Notices & Disclaimers (2)
Important Notices & Disclaimers (2) For personal use only Forward-looking statements and risks (continued) Effect of rounding Forward looking statements may assume the success of MoneyMe’s business strategies including, without limitation, integration of SocietyOne. The success of any of these strat
Slide 58: moneyme.com.au
For personal use only moneyme.com.au Copyright 2022 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218