This SMART 100 profile and the information it contains is a duplication of content submitted by the applicant during the entry process. As a function of entry, applicants were required to declare that all details are factually correct, do not infringe on another’s intellectual property and are not unlawful, threatening, defamatory, invasive of privacy, obscene, or otherwise objectionable. Some profiles have been edited for reasons of space and clarity.
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1. THE BEGINNING
This innovation initially came to life when…
…two former telco executives decided they wanted to break free from corporate Australia and use their decades of experience to revolutionise the way finance was administered to the millennial market. They set about developing a tech-based credit assessment algorithm that determined the individual risk profile of applicants using more social and online touch points than the big banks were able to: “risk-based consumer loan pricing”. Its rollout was staged to begin with small amount loans, and then include medium amount and personal loans, as well as a series of niche loan products to be launched this year.
2. WHAT & HOW
The purpose of this innovation is to…
…provide Australian millennials with financial inclusion via fast, easy, online finance at a personalised price per their individual risk profile. Consumers won’t need: ongoing credit e.g. credit cards, physical bank branches, or to wait days or provide reams of paperwork.
It does this by…
…assessing each applicant’s risk profile individually using sophisticated credit decisioning technology which includes positive repayment behavior. This is like the comprehensive credit reporting many fintechs are pushing the government for. Because it’s not yet widely used in Australia, we internalised it within our own model so Australians can be exposed to positive credit reporting, and improve their credit rating.
3. PURPOSE & BENEFITS
This innovation improves on what came before because…
…larger lenders have had the power to set uncompetitive rates, and deny credit to “risky” consumers not good for profit margins, leaving many underbanked. They’re burdened by unwieldy legacy systems that can’t provide mobile-centric, tech-based solutions at scale. Our superior credit assessment technology allows us to lend to the underbanked confidently, and pass on lower costs via cheaper loans.
Its various benefits to the customer/end-user include…
Consumers can access cheaper, faster loans at their fingertips whenever or wherever in the world they may be. The end-user can access one-off debt for a one-off need for cash – so no risk from the temptation of ongoing debt.
4. COMPETITIVE LANDSCAPE
In the past, this problem was solved by…
…it wasn’t. Underbanked consumers needing cash were denied by lenders, and may have turned to credit cards which encouraged mounting debt as a result of the exorbitant interest costs this would accrue for the lender. This would often put already financially burdened consumers further into financial hardship.
Its predecessors/competitors include…
Traditional lenders such as banks or providers of credit cards.
5. TARGET MARKET
It is made for…
Millennials – a market that is looking for maximum convenience and minimum commitment, that has a spend-as-you-earn approach to life, and wants to use their money to experience a certain lifestyle and buy the latest gadgets, without being tied down to the long term commitment of managing credit card debt, or having to go through the process of entering a bricks and mortar bank to fill out lengthy paperwork to apply for credit. It’s a group that wants to access debt via their mobiles when and how they want it.
It is available for sale through…
Any device that a millennial might wish to use – their mobile, i-pad, tablet, laptop, or even desktop computer. All that’s needed is an internet connection and the user is ready to apply for a MoneyMe loan.
Our marketing strategy is to…
…meet the consumer when and where they engage socially, speaking to them in their language, and telling them about a product that provides tangible value. We recently ran a campaign that had our logo and hashtags featured on dozens of our customers’ cars in return for free fuel – our campaigns always involve direct social engagement.
FINE PRINT: This SMART 100 profile and the information it contains is a duplication of content submitted by the applicant during the entry process. As a function of entry, applicants were required to declare that all details are factually correct, do not infringe on another’s intellectual property and are not unlawful, threatening, defamatory, invasive of privacy, obscene, or otherwise objectionable. Some profiles have been edited for reasons of space and clarity.
