CASH CONVERTERS INTERNATIONAL LIMITED FY 2021 Investor Presentation
30 August 2021
Cash Converters
As Australia's largest sub-prime,non-bank lender, we are delivering value through an omni-channel network with high brand recognition and a large loyal customer base.
Our Vision
An established brand with over 37 years of experience and customer data, now leveraging technology to innovate and develop new products to better meet our customers cash needs.
Our Purpose
To provide our customers with access to responsible finance
and a pathway up the credit curve and down the cost curve.
Short Term - High Loss - High Cost
2
FY 2021
Our Ecosystem
Growing online presence complementing our 155 Australian stores, serving a large and growing customer base in growing markets.
High customer satisfaction
NPS 611
Retail | Personal Finance | Vehicle Finance |
$46b+ Australian Circular Economy2 | $2bn+ Australian Sub-prime Market Demand3 | |
512k+ Active Customers | 98k+ Active Customers | 1.5k+ Accredited Brokers and Dealers |
Online | B2B | |
Strategic investment pre-COVID - significant growth rates experienced | Digital platform developed and deployed pre-COVID | |
29.3m website views | 393k Applications (74% of Total Apps) | $30.2m in applications |
84k transactions | 75k Loans (37% of Total Loans) | $6.7m net amount financed and growing |
$13.2m online retail sales | $95.4m Outgoings (49% of Total Outgoings) | New platform released, approval in minutes |
Store | B2C | |
1.1m transactions | 136k Applications (26% of Total Apps) | Leveraging tech, entered B2C channel |
$112.2m retail sales | 129k Loans (63% of Total Loans) | Released new online borrower direct product |
$44.5m inventory value (at 30 June 2021) | $99.7m Outgoings (51% of Total Outgoings)4 | Promising early signs |
1. | Net Promoter Score (NPS) measures customer satisfaction based on the likelihood of recommending Cash Converters. | |
3 | 2. | Sourced from Gumtree Second-hand Economy Report (2020) - page 2 - "Aussies could earn their share of the $46 billion second-hand economy…" |
3. | This represents the estimated Australian sub-prime market size, by credit demand, across vehicle and unsecured personal finance. | |
4. | Store outgoings include Small Amount Credit Contract (SACC) & Medium Amount Credit Contract (MACC) principal advances (outgoings) made in store. |
Note: All ecosystem statistics and market estimates relate to the period 1 July 2020 to 30 June 2021 (FY 2021). Store metrics include franchises.
New Product Strategy
FY 2022 will see the introduction of new low-cost cash solutions that leverage our new technology and platform to better meet customer needs.
- Customers traditionally entered our Personal Finance business via Cash Advance1 loans.
- We are leveraging our scale, data, customer insights and technology to offer new and innovative products to better meet the needs of our customers going forward.
- Introducing a lower-cost Early Wage Access (EWA) product, with a fixed fee of 5% per arrangement, to attract customers to our personal finance solutions.
• We will continue to leverage our technology to | Risk-rated |
provide protections to borrowers currently |
'exempt' under the National Credit Act.
Personal Loan (MACC2)
Current Product Stats
Personal Finance
Same day
Speed-to-Cash3
1,000+
Applications per day
400+
Potential attributes checked by Machine Learning model prior to manual assessment.
- Over time, offering longer- term cash solutions to transition customers to lower-cost (risk rated) credit options.
Personal Loan (SACC1)
Cash Advance (SACC1)
Vehicle Finance
25mins
Standard Product Features | |||
✓ 90-day Bank Statement Review | |||
✓ Credit Enquiry & Proprietary Credit Scoring | |||
Early Wage Access (EWA) | ✓ Affordability & Suitability Checks | ||
✓ | Flexible, Automated Repayments | ||
✓ No Early Settlement Fees | |||
Existing Product | New Product | ✓ No Schedule Change Fees | |
✓ | Instant Cash Disbursement (NPP) | ||
Short Term - High Loss | Long Term - Low Loss |
Fastest Application
Approval
~500
Average Credit Score (Equifax)
4 | 1. | Small Amount Credit Contract (SACC) is a regulated unsecured personal loan product, transacted in-store and online, up to $2,000. Cash Converters offers 'Cash Advance' and 'Personal Loan' 'SACC' products. |
2. | Medium Amount Credit Contract (MACC) is a regulated unsecured personal loan product, transacted in-store and online, up to $5,000. | |
3. | The time between an application submitted and the loan being funded. Describes the ideal customer journey for a simple and fully completed loan application passing assessing guidelines. |
Our Cash Solutions
New product releases will continue to transition our personal finance offering away from short-term,high-loss products to lower-cost, longer- term cash solutions to meet our customers needs.
Short Term - High LossLong Term - Low Loss
Early Wage Access | SACC1 | MACC2 | Risk-rated | Vehicle Finance | ||||
Status | NEW (FY 2022) | Existing | NEW (FY 2022) | Existing | ||||
Max. Term | 60 days | 1 year | 2 years | 2 years | 5 years | |||
Max. Loan Amount | $200 | $2,000 | $5,000 | $10,000 | $45,000 | |||
Avg. Loan Term | 4 weeks | 10 months | 16 months | 24 months | 4 years | |||
Secured | No | No | No | No | Yes (recourse) | |||
Interest Rate & Fees | No est3. fee, | 4% monthly fee | 48% APR | <=48% APR | <=48% APR | |||
5% single arrangement fee | 20% est. fee | $400 est. fee | No other fees | Inc. all fees | ||||
National Credit Act | Exempt | Yes | Yes | Yes | ||||
Regulated | We will responsibly assess | |||||||
Channel | B2C Digital | B2C Digital & In-Store | B2C Digital & In-store | B2B & B2C Digital | ||||
Digital assets serving growing demand and enabling new product releases | ||||||||
Immediate access to wages for general expenses; avoid the risk of | A lower cost credit facility enabling a pre-approved credit limit to | |||||||
credit card debt spiral. | be accessed with interest charged only on amount borrowed |
1. Small Amount Credit Contract (SACC) is a regulated unsecured personal loan product, transacted in-store and online, up to $2,000. Cash Converters offers Cash Advance' and 'Personal Loan' 'SACC' products.
5 2. Medium Amount Credit Contract (MACC) is a regulated unsecured personal loan product, transacted in-store and online, up to $5,000.
3. 'Est. fee' = Establishment Fee governed by the National Credit Act.
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Cash Converters International Ltd. published this content on 30 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 September 2021 10:41:01 UTC.
