It is boom times for Australian payday lending
Demand for MoneyMe's short-term consumer loans has grown dramatically this year.
MoneyMe has written A$100 million in loans since the business began in 2013, marking a new milestone for the Australian short-term lender.
Like other fintechs, MoneyMe’s growth owes to demand from millennials, which the company says picked up massively mid-2017.
“The millennial market is actively looking for financial alternatives to the big banks and their ‘one size fits all’ lending proposition,” said Clayton Howes, CEO of MoneyMe, in a statement.
“By creating products [for] consumers the big banks don’t find profitable enough to service… we are hoping to contribute to the growing democratisation of financial services that fintech is driving globally.”
MoneyMe writes consumer loans up to A$10,000 of a maximum 24-month tenure. Interest rates are 15 - 24 percent on a monthly basis (59 - 68 percent annualised).
Its hitting the A$100 million milestone shows the increasing allure of payday lenders in Australia as well as fintech lenders’ ability to stand strong without bank support. (MoneyMe made headlines last year when it partnered with an unnamed wealthy family fund and let go of credit lines from Bendigo and Adelaide Bank.)
MoneyMe has been classified by corporate cop ASIC as a payday lender in the past. But the company - like other companies branded as payday lenders - rejects the classification.