SYDNEY, June 9, 2023 /PRNewswire/ -- Digital lender and non-bank challenger MONEYME (ASX: MME) is helping its Autopay customers "go green" with the launch of a 1 percent discounted interest rate on loans for electric vehicles (EVs).
The discount is one of the biggest for EV loans currently on the market. It is aimed at making EVs more affordable for all Australians and forms part of MONEYME's growing ESG agenda and targets, on its way to becoming B Corp Certified.
Awarded Canstar's Innovation Excellence Award in 2022, MONEYME's Autopay offering has been lauded as one of the fastest and most innovative car loans on the market with settlement occurring in as little as 60 minutes, seven days a week.
The discounted loan is expected to support Autopay's growth due to rising demand for EVs, which have seen a 65 percent increase in vehicle sales since 2021, with state governments aiming to make EVs 46 percent of all vehicles sold by 2030.
With the number of Autopay loans for EVs already on the rise, jumping from less than 1 percent of all Autopay loans in February 2022 to nearly 5 percent in February 2023, MONEYME is hoping for a significant uptick in customers choosing a greener option in a bid to help Australia reduce emissions.
The discounted EV loan follows the Federal Government's publishing of its National Electric Vehicle Strategy transition to a decarbonised transport system" - a transition said to be essential to reach Australia's net zero target by 2050. The strategy aims to increase the uptake of EVs by, in part, making EVs affordable and accessible.
In line with this aim, MONEYME expects its discounted rate to encourage aspiring or on-the-fence EV customers to view EVs as an affordable option on top of being more environmentally friendly, while also increasing its originations and book performance.
MONEYME Autopay data reveals that loans used for EVs are significantly better in credit quality, with customers having an average Equifax score of 846 (12 percent higher than for non EVs) and lower arrears rates.
MONEYME Autopay customer data also shows that EVs have a higher average purchase price ($60,990 versus $32,862) compared to non-EVs.
Clayton Howes, CEO & Managing Director of MONEYME said: "The growing supply of, and demand for, electric vehicles present an exciting market opportunity that aligns perfectly with our strategy and core values, making the introduction of a discounted rate for EV loans a no-brainer for us.
"We have noticed a clear trend among our Autopay customers of increasingly opting for electric vehicles. These loans exhibit promising financial characteristics, backed by high-value assets and benefiting from strong customer repayment behaviour. As a result, they make solid additions to our loan book, with significantly lower loss rates.
"As part of our commitment to environmental and social impact, we aim to lead the industry in driving positive change. Electric vehicles play a crucial role in Australia's transition away from fossil fuels, and by offering this discount, we are incentivising our customers to make the switch to go green."
Alexander Graham, Head of Environmental, Social & Governance (ESG) at MONEYME said: "MONEYME is always striving to have a positive impact on society and the environment, a commitment that is reflected in our company's constitution.
"This EV rate discount is another tangible example of MONEYME putting its money where its mouth is when it comes to prioritising sustainability. We are not only concerned about our operational impact, we also want to play a positive role in helping our customers make more sustainable choices.
"Following the launch of our carbon offset program for our Autopay product, this discount is a significant next step in rewarding customers for their sustainable decisions."
MONEYME is a leading Australian disruptor using technology to become the #1 challenger to the major banks.
With a focus on innovation, it funds credit approved ambitious people with the advantage of market-leading speed and automated customer experiences. Leveraging AI and advanced cloud-based technology, it offers highly automated credit products across personal, auto and real estate finance.
MONEYME Limited is listed on the ASX, and the Group includes licensed and regulated credit and financial services providers operating in Australia.