Fintech lender MoneyMe is in the process of expanding its broker model to bring in greater loan volumes for its personal lending products.
In an interview with Australian Broker
, MoneyMe CEO Clayton Howes, said that brokers present a particularly strong channel proposition which he hoped could be leveraged to reach a mass audience.
“We look to brokers to provide the sharpest rates in town. How we see it is brokers are able to navigate through the noise of what’s available with the different institutions and provide a feel for a competitive rate. Those are the guys we’d like to partner with to distribute our product.”
Expansion into the broker channel for personal loan products is a “now thing” for MoneyMe, Howes said, with the firm already signing up a couple of brokers.
“They’re forming quite a significant part of our makeup of our acquisitions already. These brokers are already bringing in about 10% of our volume. We’re anticipating that we’ll need a few more to get to the 40% mark that comes through brokers.”
Brokers are also a massive opportunity to distribute MoneyMe’s loans without having to compete with the brand presence of the big four banks.
MoneyMe will offer brokers “generous commissions” or a “shared value,” Howes said.
This commission structure would be kept relatively simple given the nature of the personal loan products, Alan Yeo, head of strategic partnerships and transactions, told Australian Broker.
“Personal loans are a little bit different to mortgages. Ticket sizes are smaller. You’ve got lower amounts of churning and refinancing. Traditionally in the mortgage market, the trail is there as a loyalty measure to ensure brokers don’t churn the customer too early.
“In the personal loan product space, that’s not really a problem. My thoughts are that the commission won’t be as complicated as that of the mortgage market.”
Howes also expressed interest in branching into the mortgage space in a few years’ time. As a Millennial-focused lender, MoneyMe had already tapped into this consumer at an early stage of their credit lifecycle.
“As they mature and as we mature with them, our product offering will naturally expand with them. Buying a house will obviously be of importance to them at some point in their lifecycle.”
In the market for three years, MoneyMe was originally part of the tech start-up circle. It eventually broke through into mainstream mass lending about a year ago.
“From lending up to $20m we blasted through the $100m mark. What’s interesting is that all of this has happened outside of the banking network.”
With this $100m milestone occurring two months ago, MoneyMe has since reached $125m in lending.
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