Koho Financial will begin offering a line of credit to its customers through a partnership with fellow Toronto-based FinTech firm Propel Holdings.
Koho recently introduced new rent reporting features to help its users build credit history.
The partnership will see Koho introduce and manage the line of credit as one of the core lending products in its app. Meanwhile, Propel will power the technology, underwriting, servicing, and funding of the loans, which will range between $1,000 and $15,000, through its lending platform Fora Credit.
“We’re proud to partner with Propel to further our mutual mission of empowering all Canadians to make financial progress,” Koho chief product officer Jack Chung said in a statement.
Customers are currently able to join a waitlist on Koho’s website to gain access to the line of credit offering when it goes live this Fall.
Founded in 2011, Propel uses a proprietary AI-powered online lending platform to help consumers access installment loans and lines of credit. The FinTech firm raised $70 million from its TSX debut in October 2021. While many of the companies that performed an initial public offering in the early 2020s have recently opted to go private, Propel has performed remarkably well having increased its share value by nearly 200 percent since its debut as of press time.
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The addition of a line of credit to Koho’s suite of offerings follows the FinTech startup revealing that it’s working with Canadian regulators to obtain a Schedule 1 banking licence. Koho founder and CEO Daniel Eberhard told BetaKit in January that he hopes this move will mark the beginning of an opening in Canada’s deeply uncompetitive financial services market.
Last month, Eberhard told BetaKit that Koho is still very active and on track with the licencing process and that, in the meantime, the company has been focused on balancing growth with reaching profitability.
Koho has traditionally relied on partnerships with regulated third parties to deliver many of its products. Last month, the app introduced new rent reporting features to help its users build credit history, as well as earn cash back on rent, and get tenant insurance through a partnership with Walnut Insurance.
Koho has more new offerings coming down the pipe this fall, including a buy now, pay later tool that’s currently in beta.
Feature image courtesy Koho via YouTube.