1 00:00:03,290 --> 00:00:06,290 Sean Aylmer: Welcome to the Fear and Greed Daily Interview. I'm Sean Aylmer. 2 00:00:06,530 --> 00:00:09,399 Sean Aylmer: We've spoken to a lot of fintechs on this podcast, 3 00:00:09,410 --> 00:00:11,389 Sean Aylmer: and when it comes to buy now, pay later, a 4 00:00:11,390 --> 00:00:13,310 Sean Aylmer: lot of companies are trying to carve out their own 5 00:00:13,310 --> 00:00:16,640 Sean Aylmer: niche in a crowded sector. But today's guest is a 6 00:00:16,640 --> 00:00:19,940 Sean Aylmer: little different. While they do offer instalment payments, instead of 7 00:00:19,940 --> 00:00:22,370 Sean Aylmer: going up against some of the new digital giants, MoneyMe is 8 00:00:22,730 --> 00:00:27,230 Sean Aylmer: using technology and AI (Artificial Intelligence) to take on some more traditional opponents, 9 00:00:27,230 --> 00:00:30,980 Sean Aylmer: the big banks, in consumer lending. MoneyMe is listed on the 10 00:00:30,980 --> 00:00:33,290 Sean Aylmer: ASX with a market cap in the range of 350 11 00:00:33,290 --> 00:00:36,230 Sean Aylmer: to 400 million. Clayton Howes is the founder of MoneyMe 12 00:00:36,470 --> 00:00:38,690 Sean Aylmer: and my guest this morning. Clayton, welcome to Fear and Greed. 13 00:00:38,930 --> 00:00:39,800 Clayton Howes: Thanks for having me. 14 00:00:40,130 --> 00:00:42,769 Sean Aylmer: How did MoneyMe come about? Where's it come from? 15 00:00:43,340 --> 00:00:46,940 Clayton Howes: When I founded it in 2013, there were the issues 16 00:00:46,940 --> 00:00:50,810 Clayton Howes: in the obvious financial services sector where having a digital 17 00:00:50,810 --> 00:00:54,830 Clayton Howes: generation of consumer shifting to online, they were thinking about 18 00:00:55,100 --> 00:01:00,590 Clayton Howes: how they transact with efficiency. And in the financial services sector, 19 00:01:00,590 --> 00:01:03,530 Clayton Howes: we're still seeing people queuing up at banks for transactional 20 00:01:03,920 --> 00:01:07,820 Clayton Howes: purposes as opposed to having an online efficient, ready to 21 00:01:07,819 --> 00:01:08,330 Clayton Howes: go model. 22 00:01:08,610 --> 00:01:10,520 Sean Aylmer: So so why did you go consumer lending though? I'm 23 00:01:10,520 --> 00:01:11,330 Sean Aylmer: just interested in that. 24 00:01:12,050 --> 00:01:14,480 Clayton Howes: It's all about data for us. So where I saw the 25 00:01:14,480 --> 00:01:17,780 Clayton Howes: gap with the banks, it was the ability to provide 26 00:01:18,080 --> 00:01:21,590 Clayton Howes: services that were actually appealing to a new generation. The 27 00:01:21,590 --> 00:01:25,010 Clayton Howes: new generation want to trust and want flexibility, freedom they 28 00:01:25,010 --> 00:01:28,460 Clayton Howes: want it at their fingertips. We call them the generation now people. 29 00:01:28,520 --> 00:01:28,830 Sean Aylmer: Yeah. 30 00:01:28,850 --> 00:01:33,760 Clayton Howes: Now, our consumers with many, many, many, many, many interactions, 31 00:01:33,770 --> 00:01:36,080 Clayton Howes: we get to learn more about this customer. We get 32 00:01:36,080 --> 00:01:39,169 Clayton Howes: to predict risk better. And what I saw in Australia 33 00:01:39,170 --> 00:01:42,290 Clayton Howes: is there's a gap in the ability to have a 34 00:01:42,290 --> 00:01:44,690 Clayton Howes: finance brand that's likable, trusted. 35 00:01:44,780 --> 00:01:45,110 Clayton Howes: Yeah. 36 00:01:45,290 --> 00:01:49,130 Sean Aylmer: And for consumers, having my experience in the past, having 37 00:01:49,340 --> 00:01:52,610 Sean Aylmer: worked at Vodafone, I loved appealing to the mass market 38 00:01:52,610 --> 00:01:55,730 Sean Aylmer: consumer play. I thought the power of consumers here in 39 00:01:55,730 --> 00:01:59,660 Sean Aylmer: Australia deserve better. I think the consumer has an opportunity 40 00:01:59,660 --> 00:02:03,000 Sean Aylmer: for us to have a much longer lifetime value with them. 41 00:02:03,050 --> 00:02:05,750 Sean Aylmer: So the lifetime value, when we think about our MoneyMe customer, 42 00:02:06,050 --> 00:02:09,860 Sean Aylmer: we traverse across that age spectrum. The earlier to credit 43 00:02:09,860 --> 00:02:12,829 Sean Aylmer: entry consumer all the way through to the homeowner. 44 00:02:12,919 --> 00:02:13,200 Sean Aylmer: Yeah. 45 00:02:13,250 --> 00:02:16,160 Sean Aylmer: And so what MoneyMe has done and it's done quite differently, 46 00:02:16,160 --> 00:02:19,670 Sean Aylmer: is been able to create products, really cool products for 47 00:02:19,669 --> 00:02:23,090 Sean Aylmer: this modern generation that allows them to start with MoneyMe 48 00:02:23,090 --> 00:02:24,890 Sean Aylmer: at an earlier stage. So it might be a small 49 00:02:24,889 --> 00:02:27,710 Sean Aylmer: personal loan or a credit card we call freestyle. Now 50 00:02:27,710 --> 00:02:30,230 Sean Aylmer: the modern credit card, not the old clunky bank one, 51 00:02:30,590 --> 00:02:34,459 Sean Aylmer: all the way through to property sector driven products, larger 52 00:02:34,460 --> 00:02:36,530 Sean Aylmer: ticket items. And then, well, then there's autopay. 53 00:02:37,010 --> 00:02:40,609 Sean Aylmer: OK, so it's interesting, MoneyMe. I totally agree the banks 54 00:02:40,610 --> 00:02:42,950 Sean Aylmer: sort of have that sector of the market. Then down 55 00:02:42,950 --> 00:02:47,390 Sean Aylmer: the other spectrum, you've got the very expensive lenders. And 56 00:02:47,389 --> 00:02:48,730 Sean Aylmer: I was going to say payday lenders, I don't know whether 57 00:02:48,740 --> 00:02:51,140 Sean Aylmer: that's quite the right term or not. But you want 58 00:02:51,139 --> 00:02:53,150 Sean Aylmer: to stay away from those as much as possible. MoneyMe is 59 00:02:53,389 --> 00:02:57,890 Sean Aylmer: sort of in that middle, trying to appeal to younger generation, 60 00:02:58,040 --> 00:03:02,150 Sean Aylmer: credible consumer finance without having to go to really, really 61 00:03:02,150 --> 00:03:03,410 Sean Aylmer: high interest rate people. 62 00:03:03,740 --> 00:03:08,120 Clayton Howes: Absolutely. What's really interesting about MoneyMe and it's leading this 63 00:03:08,120 --> 00:03:12,020 Clayton Howes: generational change, it's making things more efficient, but it's not 64 00:03:12,020 --> 00:03:14,240 Clayton Howes: adding the price tag to it. In fact, it's actually 65 00:03:14,240 --> 00:03:17,780 Clayton Howes: making the price tag much more affordable for consumers. It's 66 00:03:17,780 --> 00:03:20,900 Clayton Howes: making credit fair. We've got a risk-adjusted pricing model. And 67 00:03:20,900 --> 00:03:25,010 Clayton Howes: this risk-adjusted pricing model looks beyond the traditional credit bureau scores. 68 00:03:25,070 --> 00:03:28,820 Clayton Howes: It goes into understanding the customer's financial habits. So we're 69 00:03:28,820 --> 00:03:32,540 Clayton Howes: taking a lot of data, interrogating it and all in 70 00:03:32,540 --> 00:03:36,080 Clayton Howes: real time, by the way, and understanding the consumer's financial 71 00:03:36,080 --> 00:03:39,740 Clayton Howes: habits and matching a product that suits them. And what 72 00:03:39,740 --> 00:03:42,290 Clayton Howes: we've then been able to do is provide our service 73 00:03:42,290 --> 00:03:45,800 Clayton Howes: to across that spectrum of borrowers, the spectrum of borrowers 74 00:03:45,800 --> 00:03:48,860 Clayton Howes: with good financial behavioural patterns. And we were able to 75 00:03:48,860 --> 00:03:52,190 Clayton Howes: do it really, really quickly. So what meets the eye 76 00:03:52,190 --> 00:03:55,520 Clayton Howes: with us being able to provide a fast transactional service? 77 00:03:55,700 --> 00:03:57,830 Clayton Howes: We're doing way, way more than what meets the eye. 78 00:03:58,190 --> 00:04:01,220 Clayton Howes: We're looking for consistency and patterns that enables us to 79 00:04:01,220 --> 00:04:05,180 Clayton Howes: go with that consumer across their financial journey and in turn, 80 00:04:05,480 --> 00:04:08,900 Clayton Howes: now that we've established a bank warehouse facility, our prices 81 00:04:08,900 --> 00:04:10,880 Clayton Howes: are actually cheaper than the banks on the main. 82 00:04:11,150 --> 00:04:14,360 Sean Aylmer: Okay, so you've got the backing of someone big, a 83 00:04:14,360 --> 00:04:17,540 Sean Aylmer: big organisation which is providing you warehouse financing, is that right? 84 00:04:18,020 --> 00:04:21,469 Sean Aylmer: And so what you're lending out is competitive with the banks. 85 00:04:22,310 --> 00:04:25,730 Clayton Howes: When we established our major bank warehouse funding, that is 86 00:04:25,730 --> 00:04:28,619 Clayton Howes: a massive growth catalyst for us. 87 00:04:28,690 --> 00:04:28,930 Sean Aylmer: Yeah. 88 00:04:28,970 --> 00:04:32,060 Clayton Howes: But with growth and scale, we get to offer cheaper, 89 00:04:32,060 --> 00:04:36,740 Clayton Howes: affordable pricing. And we, in turn, have created pricing across 90 00:04:36,740 --> 00:04:40,460 Clayton Howes: our products, our personal loan product, our freestyle credit product, 91 00:04:40,700 --> 00:04:44,930 Clayton Howes: our autopay product that absolutely competes directly with the banks 92 00:04:44,930 --> 00:04:47,780 Clayton Howes: on pricing. And in many parts, we beat the bank 93 00:04:47,779 --> 00:04:52,910 Clayton Howes: on pricing. So not only are we faster, more efficient, likeable, 94 00:04:53,089 --> 00:04:55,970 Clayton Howes: but we come with a fantastic price tag, too, for consumers. 95 00:04:56,000 --> 00:04:56,400 Sean Aylmer: Okay. 96 00:04:56,420 --> 00:04:58,520 Clayton Howes: And so it's a win-win for everyone. The bank gets 97 00:04:58,520 --> 00:05:01,159 Clayton Howes: a bigger wholesale funding structure, so they get to lend 98 00:05:01,160 --> 00:05:02,799 Clayton Howes: out a whole lot of money to us. They can 99 00:05:02,800 --> 00:05:05,710 Clayton Howes: do it more efficiently than them. Now, we don't have 100 00:05:05,710 --> 00:05:10,240 Clayton Howes: bank branches. You know, our digital ways of servicing customers 101 00:05:10,240 --> 00:05:14,200 Clayton Howes: creates cheaper opportunities for us to build out scale. It 102 00:05:14,200 --> 00:05:17,710 Clayton Howes: creates opportunities for us to give customers more affordable pricing. 103 00:05:17,980 --> 00:05:20,230 Clayton Howes: And the banks like that and the banks are supporting us. 104 00:05:20,710 --> 00:05:23,860 Sean Aylmer: Yeah. I mean, Westpac provides warehousing facilities, is that correct? 105 00:05:24,220 --> 00:05:24,910 Clayton Howes: Yeah, that's right. 106 00:05:25,089 --> 00:05:27,250 Sean Aylmer: Yeah. I mean, they've done something similar. Well, they're white 107 00:05:27,250 --> 00:05:31,420 Sean Aylmer: labelling products for Afterpay. It's interesting how, particularly in Westpac's case, 108 00:05:31,990 --> 00:05:35,290 Sean Aylmer: they are quite happy to go into the white labelling 109 00:05:35,589 --> 00:05:38,120 Sean Aylmer: side of the business and allow someone else like MoneyMe 110 00:05:38,800 --> 00:05:41,200 Sean Aylmer: to do a lot of the customer transactions. 111 00:05:41,890 --> 00:05:44,859 Clayton Howes: It's interesting. I think we can see progress happening from 112 00:05:44,860 --> 00:05:49,300 Clayton Howes: our major banks where they're supporting infrastructures like MoneyMe that's 113 00:05:49,300 --> 00:05:52,270 Clayton Howes: being able to use efficiencies and high automation and the 114 00:05:52,270 --> 00:05:55,480 Clayton Howes: ability to be agile. Things that they struggle to have 115 00:05:55,480 --> 00:05:57,670 Clayton Howes: and things they know that they're going to really struggle 116 00:05:57,670 --> 00:06:01,810 Clayton Howes: as the consumer pace and demand continues to put strain 117 00:06:01,810 --> 00:06:04,540 Clayton Howes: on their business. The ability for them to support businesses 118 00:06:04,540 --> 00:06:07,600 Clayton Howes: like Afterpay and MoneyMe has been fantastic. It's good for 119 00:06:07,600 --> 00:06:09,070 Clayton Howes: the Australian economy as well. 120 00:06:09,320 --> 00:06:12,460 Sean Aylmer: Yeah, more competition. Absolutely. Stay with me, Clayton. We'll be 121 00:06:12,460 --> 00:06:13,240 Sean Aylmer: back in a minute. 122 00:06:18,250 --> 00:06:21,080 Sean Aylmer: My guest this morning is Clayton Howes, founder of MoneyMe. 123 00:06:21,640 --> 00:06:23,080 Sean Aylmer: So who's your typical customer? 124 00:06:23,589 --> 00:06:27,520 Clayton Howes: So our customers really interesting. We've got a diverse customer 125 00:06:27,520 --> 00:06:30,610 Clayton Howes: base and we see the customer from the earlier ages 126 00:06:30,610 --> 00:06:35,230 Clayton Howes: of their credit lifecycle. So probably slightly past the Afterpay stage, 127 00:06:35,470 --> 00:06:38,770 Clayton Howes: but all the way through to their homeowner stage. And 128 00:06:38,770 --> 00:06:41,589 Clayton Howes: that's all done by design for us. We created a 129 00:06:41,589 --> 00:06:45,489 Clayton Howes: series of products, and these products are what really differentiates 130 00:06:45,490 --> 00:06:48,880 Clayton Howes: us from the other challenger lenders in Australia. We're able 131 00:06:48,880 --> 00:06:51,520 Clayton Howes: to offer them a personal loan for a particular purpose. 132 00:06:51,790 --> 00:06:54,190 Clayton Howes: We're able to offer them a credit card that's more 133 00:06:54,190 --> 00:06:57,520 Clayton Howes: an ongoing habitual credit solution for them all the way 134 00:06:57,520 --> 00:07:02,320 Clayton Howes: through to property managed expenses. For example, ListReady. Homeowners that 135 00:07:02,320 --> 00:07:05,039 Clayton Howes: are selling their property, there's some expenses that go into it. 136 00:07:05,050 --> 00:07:08,290 Clayton Howes: And we created a product specifically for them distributed by 137 00:07:08,290 --> 00:07:11,530 Clayton Howes: real estate agents, which is incredibly efficient. We were able 138 00:07:11,530 --> 00:07:14,110 Clayton Howes: to offer them a solution to do up their house 139 00:07:14,320 --> 00:07:17,260 Clayton Howes: and sell it for a better outcome. Now, that's a 140 00:07:17,260 --> 00:07:18,850 Clayton Howes: really interesting customer. 141 00:07:19,330 --> 00:07:21,520 Sean Aylmer: So once you have a customer like that, though, and 142 00:07:21,520 --> 00:07:24,790 Sean Aylmer: they know about you, suddenly you can actually you're available 143 00:07:24,790 --> 00:07:27,910 Sean Aylmer: to them for the next stage of their lifecycle. 144 00:07:28,150 --> 00:07:31,630 Clayton Howes: And that's exactly the strategy for MoneyMe. We want to 145 00:07:31,630 --> 00:07:35,620 Clayton Howes: have a much longer lasting relationship with our customers. You know, 146 00:07:35,620 --> 00:07:39,210 Clayton Howes: the banks have got a great relationship, long relationships with customers. 147 00:07:39,490 --> 00:07:41,770 Clayton Howes: If you think about Afterpay, it's phenomenal. But there's a 148 00:07:41,770 --> 00:07:43,960 Clayton Howes: point in time where it doesn't really make sense for 149 00:07:43,960 --> 00:07:45,170 Clayton Howes: you and some of your ... 150 00:07:45,250 --> 00:07:48,040 Sean Aylmer: Yeah. As you become wealthier and that you don't need to pay in instalments basically. 151 00:07:48,790 --> 00:07:52,150 Clayton Howes: That's right. But MoneyMe's plan is to traverse across the 152 00:07:52,150 --> 00:07:55,750 Clayton Howes: lifetime with that customer. And so having all these diversified 153 00:07:55,750 --> 00:07:59,110 Clayton Howes: products not only creates a more robust lending base, but 154 00:07:59,110 --> 00:08:02,530 Clayton Howes: it creates more opportunities to stay with this customer. Already, 155 00:08:02,530 --> 00:08:05,980 Clayton Howes: MoneyMe's got 39 per cent of our customers have at least 156 00:08:05,980 --> 00:08:07,390 Clayton Howes: had two products with us. 157 00:08:07,570 --> 00:08:07,870 Sean Aylmer: Oh, wow. 158 00:08:07,890 --> 00:08:10,960 Clayton Howes: So the model is really working. So we're far beyond 159 00:08:11,170 --> 00:08:14,920 Clayton Howes: having a personal loan digital model. We've got a personal loan, 160 00:08:14,920 --> 00:08:16,810 Clayton Howes: credit card and all these other types of models that's 161 00:08:16,810 --> 00:08:19,990 Clayton Howes: purely designed to keep the customer's interest and be continuously 162 00:08:19,990 --> 00:08:20,800 Clayton Howes: relevant to them. 163 00:08:21,100 --> 00:08:22,900 Sean Aylmer: So what's your channel to market? You just gave a 164 00:08:22,910 --> 00:08:25,450 Sean Aylmer: great example of where real estate agents can introduce you 165 00:08:25,450 --> 00:08:27,910 Sean Aylmer: to people who might need ten thousand dollars to get 166 00:08:27,910 --> 00:08:30,850 Sean Aylmer: through that whole process of buying their new home. What 167 00:08:30,850 --> 00:08:33,520 Sean Aylmer: is your channel? Is it digital marketing? Is it using 168 00:08:33,520 --> 00:08:35,920 Sean Aylmer: third parties like real estate? How's it work? 169 00:08:36,250 --> 00:08:39,130 Clayton Howes: Yeah, we are pretty unique in Australia. What we cracked 170 00:08:39,130 --> 00:08:42,819 Clayton Howes: was that direct to customer strategy. So we wanted to present 171 00:08:42,820 --> 00:08:48,699 Clayton Howes: our proposition to customers directly. And that was through social media, YouTube, Instagram, Facebook, 172 00:08:49,000 --> 00:08:54,790 Clayton Howes: distribution of ads programmatically. We had really strong SEO (Search Engine Optimisation) and SEM (Search Engine Marketing) strategies, 173 00:08:55,090 --> 00:08:58,480 Clayton Howes: and 92 per cent of the customers that we've onboarded to 174 00:08:58,480 --> 00:09:02,170 Clayton Howes: date have been through those direct to customer distribution strategies. 175 00:09:02,380 --> 00:09:02,710 Sean Aylmer: Wow. 176 00:09:02,740 --> 00:09:07,540 Clayton Howes: Then we have transitioned and we're adding this new distribution 177 00:09:07,540 --> 00:09:11,230 Clayton Howes: model that we've seen Afterpay and others do incredibly well with, 178 00:09:11,470 --> 00:09:14,950 Clayton Howes: and that's distribute their product through other businesses. So our 179 00:09:14,950 --> 00:09:19,420 Clayton Howes: new business to business, to customer strategy is unfolding incredibly well. 180 00:09:19,750 --> 00:09:24,370 Clayton Howes: For example, using real estate agents to distribute our ListReady product. 181 00:09:24,700 --> 00:09:28,060 Clayton Howes: We introduced MoneyMe Plus, and that's for the retailer, the 182 00:09:28,059 --> 00:09:31,750 Clayton Howes: retailer that's enjoyed the experience by distributing an Afterpay pay product 183 00:09:31,750 --> 00:09:34,360 Clayton Howes: for their customers to get more sales. We've done that 184 00:09:34,360 --> 00:09:37,690 Clayton Howes: by having a product that sits above the Afterpay value 185 00:09:38,320 --> 00:09:40,870 Clayton Howes: for the larger ticket items, and that's working incredibly well 186 00:09:40,870 --> 00:09:42,699 Clayton Howes: for us. We only just launched that last year, and 187 00:09:42,700 --> 00:09:45,400 Clayton Howes: we've got a stack of retailers signing up. And then 188 00:09:45,400 --> 00:09:49,210 Clayton Howes: there's that game-changer one which was AutoPay. We're distributing it 189 00:09:49,210 --> 00:09:52,630 Clayton Howes: through dealers. And in the same vein, dealers are using 190 00:09:52,650 --> 00:09:57,160 Clayton Howes: AutoPay because they're creating more sales for their business. Incredible 191 00:09:57,160 --> 00:10:00,010 Clayton Howes: opportunity for us to distribute through that B to B 192 00:10:00,010 --> 00:10:02,920 Clayton Howes: to C channel. And so as we grow, what we 193 00:10:02,920 --> 00:10:06,130 Clayton Howes: get more effective with is our marketing costs get more effective. 194 00:10:06,370 --> 00:10:09,070 Clayton Howes: Our wholesale costs get more effective for us. And we 195 00:10:09,070 --> 00:10:11,949 Clayton Howes: just get to be in more places, more quickly with 196 00:10:11,950 --> 00:10:13,240 Clayton Howes: more products for customers. 197 00:10:13,690 --> 00:10:14,980 Sean Aylmer: I mean, one thing that you are doing that Afterpay 198 00:10:15,220 --> 00:10:16,930 Sean Aylmer: is not doing and Zip Co is not doing, and 199 00:10:16,929 --> 00:10:19,150 Sean Aylmer: most of the buy now pay later guys aren't doing, 200 00:10:19,480 --> 00:10:23,410 Sean Aylmer: you're actually making money. Now, congratulations on that. But of course, 201 00:10:23,410 --> 00:10:27,520 Sean Aylmer: with Afterpay and Zip Co, they're spending huge amounts of money marketing, particularly 202 00:10:27,520 --> 00:10:30,940 Sean Aylmer: into the US, to build their businesses. So it's not 203 00:10:30,940 --> 00:10:33,370 Sean Aylmer: even a criticism of them for not making money at 204 00:10:33,370 --> 00:10:36,359 Sean Aylmer: this point. Why is it that you are making money? 205 00:10:36,370 --> 00:10:39,670 Sean Aylmer: Is your marketing spend proportionately, not as big or you 206 00:10:39,670 --> 00:10:41,920 Sean Aylmer: don't need to? I'm just interested that most of your 207 00:10:41,920 --> 00:10:44,589 Sean Aylmer: competitors aren't making money, but you are. 208 00:10:45,250 --> 00:10:48,760 Clayton Howes: It's really interesting. We built a model that was designed 209 00:10:48,760 --> 00:10:52,090 Clayton Howes: to be a growth and profit business. Now, where the 210 00:10:52,090 --> 00:10:55,090 Clayton Howes: secret in the making of this business has become is 211 00:10:55,090 --> 00:10:56,440 Clayton Howes: all about efficiencies. 212 00:10:56,610 --> 00:10:56,850 Sean Aylmer: Yeah. 213 00:10:56,900 --> 00:10:59,590 Clayton Howes: When you acquire a customer and you have multiple products for 214 00:10:59,590 --> 00:11:03,760 Clayton Howes: them and your cost base is highly automated, the economics 215 00:11:03,760 --> 00:11:06,460 Clayton Howes: actually are quite simple for us. Our cost of borrowing 216 00:11:06,460 --> 00:11:08,920 Clayton Howes: money is cheap. The ability for us to distribute our 217 00:11:08,920 --> 00:11:12,429 Clayton Howes: product is getting cheaper. The ability for us to manage 218 00:11:12,429 --> 00:11:17,500 Clayton Howes: our operations with scale using automation is creating incredible operating leverage. 219 00:11:17,910 --> 00:11:21,060 Clayton Howes: So those fundamentals are the key ingredient. But I think 220 00:11:21,059 --> 00:11:24,479 Clayton Howes: one of the major important differences for us is that 221 00:11:24,480 --> 00:11:28,590 Clayton Howes: as we've grown with scale, we're creating a value proposition for 222 00:11:28,590 --> 00:11:33,300 Clayton Howes: our customers that's creating longer lifetime revenue value. So if 223 00:11:33,300 --> 00:11:36,060 Clayton Howes: we take the end of this year, we've got 98 224 00:11:36,059 --> 00:11:39,390 Clayton Howes: million dollars of revenue that's already contracted for us. So 225 00:11:39,390 --> 00:11:43,290 Clayton Howes: having customers with the payment arrangement that's for about, say, 226 00:11:43,290 --> 00:11:46,380 Clayton Howes: two or three years, that's contracted revenue that we can 227 00:11:46,380 --> 00:11:51,150 Clayton Howes: start building and banking really early. So even without originations 228 00:11:51,150 --> 00:11:54,390 Clayton Howes: into this financial year, we've already got 50 million dollars 229 00:11:54,390 --> 00:11:57,480 Clayton Howes: of contracted revenue. And so when we build out this business, 230 00:11:57,750 --> 00:12:00,870 Clayton Howes: the momentum just gets bigger. We don't have to chase 231 00:12:01,290 --> 00:12:07,350 Clayton Howes: every single growth opportunity. We're creating opportunity and that momentum 232 00:12:07,350 --> 00:12:08,610 Clayton Howes: is compounding for us. 233 00:12:09,179 --> 00:12:10,950 Sean Aylmer: Clayton, thank you for talking to Fear and Greed. 234 00:12:11,980 --> 00:12:12,780 Clayton Howes: Outstanding. Thanks very much, Sean. 235 00:12:13,020 --> 00:12:15,690 Sean Aylmer: That was Clayton Howes, founder of MoneyMe. This is the 236 00:12:15,690 --> 00:12:18,000 Sean Aylmer: Fear and Greed Daily Interview. Join me every morning for the 237 00:12:18,000 --> 00:12:20,849 Sean Aylmer: full Fear and Greed podcast with all the business news you need 238 00:12:20,850 --> 00:12:23,400 Sean Aylmer: to know. I'm Sean Aylmer. Enjoy your day.