AI is speeding up loan approvals, and ASX fintechs like MoneyMe are ahead of the game

Fintechs are using AI and alternative data to speed up loan approvals, making credit more accessible to those overlooked by traditional banks.

AI is changing how fast you get approved for loans. Pic: Getty Images

• AI is changing how fast you get approved for loans

• Fintechs use AI to help people overlooked by traditional banks

• Tech like MoneyMe's Horizon even improves financial performance

Gone are the days of waiting weeks for a personal or car loan approval. Thanks to recent technological advancements, getting approved now takes mere minutes.

The rise of fintech (financial technology) has made the entire loan process faster and easier. They’ve replaced the traditional, slow, and paper-heavy loan processes.

The real game-changer here is how digital lenders are looking at your credit worthiness.

Traditional methods often leave out a whole bunch of people – like first-time borrowers, gig workers, or younger folks just starting out.

But these fintech lenders are using alternative data, things like spending habits and educational background, to figure out whether you're a good bet for a loan.

With AI-powered underwriting, an application can be approved and money deposited into the borrower’s account on the same day, often within minutes.

This means more people can access credit, even those who lack traditional credit histories and have been overlooked by traditional banks.

Aussie fintech lenders embracing AI

Several Aussie fintech lenders have fully embraced this cutting-edge technology to transform their loan approval process.

Plenti Group (ASX:PLT), for instance, has a technology that automates credit decisioning and pricing. By using a combination of AI and data analytics, Plenti can assess loan applications almost instantly.

The company also offers features like ‘RateEstimate’, which provides borrowers with personalised rate quotes, giving them a clearer picture of what they’ll pay before fully committing.

At Wisr (ASX:WZR), 78% of its loans are automatically approved by its AI-powered decision engine. This automation has greatly boosted its loan originations book, even during slower periods.

MoneyMe (ASX:MME), on the other hand, has developed its own proprietary technology platform called Horizon, which uses advanced algorithms to deliver fast approvals in as little as 60 minutes, with funds transferred the same day.

MoneyMe's CFO, David Wright, said the company’s strategic focus on technology has been the key driver of its success.

According to Wright, the Horizon platform – built over the past decade with half a million hours of investment – gives it a distinct competitive edge.

“Our settlement times are really quick. You could potentially walk in and walk away driving a car within an hour, sometimes even far less than that,” Wright said.

“That’s quite an advantage, especially for those wanting to get a car on the weekend."

He emphasised the real-time settlement and the improved user experience, particularly at car dealerships where customers can complete their finance details privately via text thanks to Horizon’s tech.

How the tech works behind the scenes

That a system like Horizon can disburse funds within the same day is a massive step forward compared to traditional lending systems, where approval and fund transfer can take days or even weeks.

At the core of it is AIDEN (Artificial Intelligence Decision Engine), which plays the pivotal role in evaluating loan applications.

AIDEN automates most of the company’s lending decisions, crunching through heaps of data – like bank statements, credit files, and personal info – on the fly when someone applies for a personal loan or virtual credit card.

This real-time analysis allows MoneyMe to offer near-instant loan approvals, and it can apparently process all this within just 5 seconds on average, 24/7.

In the first half of 2025, AIDEN was improved with Generative AI to automate parts of how it communicates with customers.

“We’ve used AI for our interactions with our customers, and it’s significantly improving our customer interaction,” Wright said, noting the growing role of AI in streamlining communication.

But doesn't instant approval fuel credit losses?

Well, on the contrary. AI can spot patterns and trends that a human analyst might miss, helping lenders make more accurate decisions about who to lend to.

Over time, as the AI learns from past data, it gets even better at predicting which applicants are more likely to repay their loans.

This constant refinement means that lenders can avoid making costly mistakes and focus on high-quality, low-risk borrowers.

AI systems can also identify early signs of financial distress or fraudulent activity, giving lenders a heads-up before things go south. This means fewer bad debts and more profitable, sustainable lending in the long run.

This tech-driven transformation is visible in the performance of Wisr, for instance, which has continued to maintain the high credit quality of its loan book with a stable credit score of 798.

Meanwhile, MoneyMe was able to bring its credit score range higher from 741 in H1 24 to 778 in H1 25.

The company has also managed to reduce its net credit losses to 3.7% in H1 25, which is a drop from 4.6% in H1 24, all thanks to better decision-making.

Wright said he's very optimistic about this technology and MoneyMe's future.

“We are making cash profits as we grow, and the quality of our book continues to get better," he said.

At Stockhead we tell it like it is. While MoneyMe is a Stockhead advertiser, it did not sponsor this article.

Originally published as AI is speeding up loan approvals, and ASX fintechs like MoneyMe are ahead of the game