Why the MoneyMe (ASX:MME) share price is rocketing 17% today

The digital credit company's shares are making huge gains on the back of a positive trading update

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The MoneyMe Ltd (ASX: MME) share price is proving a strong performer today. This follows a trading update provided to the ASX from the digital credit company.

At the time of writing, MoneyMe shares are fetching $1.89, up 17.81% for the day.

What did MoneyMe announce?

Investors are buying up MoneyMe shares after the fintech lender revealed strong results for the month of May.

According to today's release, MoneyMe achieved record originations of $57 million for May. This represents a 384% increase on the $11.8 million it achieved in May 2020. By contrast, March and April 2021 saw $47 million and $44 million in originations, respectively.

Complementing the improved performance, the company said it is experiencing significant originations from Autopay. The secured vehicle finance solution, which launched in April, exceeded $1.2 million in cars financed during May. Pleasingly, MoneyMe expects this result to more than double in June.

MoneyMe managing director and CEO Clayton Howes said of the result:

We are very pleased to report the continuing growth and momentum in MoneyMe. Another record originations result for last month is a direct result of our products continuing to deliver amazing customer experiences, including from automated decisioning and fast settlement and across a diversified product set.

Our latest product, the newly launched Autopay, is a ground-breaking innovation and demand from the dealer and broker industry for the product has been significant and we expect origination volumes in Autopay to grow materially.

About the MoneyMe share price

For the bulk of the past 12 months, MoneyMe shares have generally traded sideways until today's announcement. The company's share price is now within sights of breaking its all-time high of $2.00.

MoneyMe has a current market capitalisation of around $314 million, with roughly 171 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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