In Canada, there hasn’t been a lot of incentive to innovate financial services as larger banks have dominated for so long. But Toronto-based Borrowell, pitching on The Disruptors, is one of the startups that have been changing that.
Borrowell is an online marketplace lending platform that offers fixed-interest loans that are funded by institutional investors; this allows them to offer lower rates from those provided by bigger banks. Users apply online and receive their rates instantly.
“Borrowell helps consumers with good credit re-finance credit cards and other kinds of high-cost debt,” said Andrew Graham, co-founder and CEO of Borrowell. “The other side of our business is that we help institutions like banks invest funds and get a higher rate of return by funding these loans that consumers are taking, so really, both sides win.”
The company has already processed almost half a billion dollars in loan applications since its launch two years ago. “So I’ve spent some time with this management team and the first thing I’ll say is that they’ve got a killer team. This company’s in the seed stage but they’ve got some really experience people,” said co-host Bruce Croxon.
Co-host Amber Kanwar noted that the fact that they were going after customers with a good credit rating was probably the reason banks were attracted to the platform. “They kept using the world ‘solid credit rating’ and this seems to allay the concerns that maybe they’re going after that lower-tier credit. Seems like they’re going right after the bank’s own backyard.” she said.
Watch the whole pitch below:
BetaKit is a production partner on The Disruptors. Tune in to BNN every Thursday night at 7pm for full episodes!
