What drove MoneyHero’s aggressive bid?

IN FOCUS

In today’s newsletter, we look at:

• The story behind MoneyHero’s aggressive bid for its rival
• What stands out about Sea’s application for a virtual bank license in Thailand

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Hi there,

I think loyalty is vital when friendships are concerned. But when it comes to credit card sign-ups? Nah.

Figuring out how to attract fickle consumers like me is key to the business prospects of a financial comparison site like MoneyHero.

As my colleague Melissa shares in this week’s featured story, the Nasdaq-listed company’s customer acquisition efforts prioritize credit card sign-ups. Up to early this year, it was running promotions that included giving away free iPads. I’d like one, please.

But this isn’t sustainable in the long term. Indeed, MoneyHero’s adjusted earnings have deteriorated over the past year, although the firm maintains that it will achieve adjusted earnings profitability on a monthly basis by the fourth quarter of this year.

This, however, is just the tip of the iceberg of Melissa’s story. Having spoken to half a dozen former employees, she uncovers how the company has adopted aggressive tactics to beat its competitors. They include MoneySmart, which MoneyHero made a bid for last month.

There have also been significant changes at the firm since it went public in a SPAC deal last year. Just a handful of staff members involved with that exercise remain.

So far, the company’s share price is down by around 78% from its opening price during its market debut. However, MoneyHero’s management is convinced the company’s new leaders have a clear strategy and are “fully committed” to executing this.

Meanwhile, in this week’s Hot Take, I take a closer look at Sea’s application for a virtual banking license in Thailand. As the company’s fintech business plays an increasingly important role in its growth and profitability, it is embracing local partners in its bid to secure a license.

— Simon

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THE BIG STORY

Behind MoneyHero’s bold plan to beat – then buy – its key rival

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THE HOT TAKE

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The walls between design and engineering are coming down tomorrow

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