Why the MoneyMe (ASX:MME) share price is leaping 6% today

Australians have not lost their taste for credit during the pandemic it seems.

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The MoneyMe Ltd (ASX: MME) share price is charging higher, up 6% in late morning trade to $2.28 per share.

Below, we take a look at the digital consumer credit company's trading update that appears to be driving ASX investor interest.

rising asx share price represented by smiling woman holding piggy bank

Image source: Getty Images

What trading update did MoneyMe announce?

MoneyMe's share price is leaping today after the company reported record originations of $112 million for July and August, the first 2 months of the new financial year (Q1 FY22).

The technology-oriented credit company achieved this in a period that's seen much of Australia in lockdown.

It said originations increased 307% compared to the prior corresponding period (pcp) of July and August 2020. And they were up 7% on the $105 million of originations in April and May of this year.

The MoneyMe share price could also be getting a boost today with its report of an increase in the credit quality in its loan book. The average Equifax score in its loan portfolio stands at 675, up from 650 as at 30 June.

Additionally, the company said it's reached $25 million in Autopay originations to date, with Autopay ramping up to $18 million in July and August from $6 million in Q4FY21 when it was launched.

The company's partnership with EasyCars has given it access to hundreds of dealerships with direct to dealer auto-finance integration.

Commenting on the trading update, MoneyMe's CEO Clayton Howes said:

We are incredibly pleased to see the strong originations growth and increasing credit quality in the business, especially in the current environment. It is a testament to our product diversification strategy and huge growth opportunity that exists.

The rapid growth in Autopay is exciting, and the new partnership with EasyCars will further accelerate our penetration into the auto-finance market by making Autopay more accessible to dealers.

MoneyMe share price snapshot

The MoneyMe share price is up an impressive 54% year-to-date. That compares to a gain of 12% for the All Ordinaries Index (ASX: XAO) so far in 2021.

Over the past month, MoneyMe's share price is up 3%, while the All Ords has slipped into the red.

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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