The pilot is expected to begin this month and is designed to allow consumers to download the Mogo app, get a no-obligation loan pre-approval, customize their loan, and complete the loan agreement, for up to $15,000 with terms of up to five years. Mogo said once approved for a loan, certain members will have their loan funded by goeasy’s operating division, easyfinancial, a leading provider of unsecured and secured non-prime consumer loans in Canada.
“This partnership enables us to more fully monetize this platform and drive new recurring fee-based revenue.”
“As one of the largest and most experienced non-prime consumer lenders in Canada, goeasy is an ideal non-prime partner for our lending platform,” said David Feller, Mogo’s founder and CEO. “Like Mogo, they have a long history in lending and share our belief in giving Canadians access to smarter credit solutions to improve their credit and ultimately better manage their financial health.”
Easyfinancial offers unsecured and secured personal lending products, targeting the 9.2 million Canadians with non-prime credit. The company has initiated more than $3.3 billion in loans and recently surpassed a $1 billion consumer loan portfolio. Goeasy, last month, invested $34 million in growth equity into another Canadian FinTech startup, PayBright.
Founded in 2003, Mogo offers personal loans, identity fraud protection, mortgages, a Visa debit card, and credit scores through Equifax, to Canada’s millennial demographic. The startup has launched several new financial products over the past two years, including a gamified mortgage management platform, a cryptocurrency offering, and its Mogo Account and iOS app.
Mogo has made a number of new announcements this year, including a partnership with digital benefits platform League, a merger with Difference Capital Financial, and that it opened more than 200,000 new member accounts last year.
“Consumer lending remains one of the highest monetization opportunities for FinTechs globally,” said Greg Feller, Mogo’s president. “We’ve invested more than $200 million and over 10 years developing our proprietary digital platform, which includes data from over 1 million funded online loans. This partnership enables us to more fully monetize this platform and drive new recurring fee-based revenue, with no capital investment or risk for these loans.”
Under the terms of an agreement, Mogo will receive compensation from goeasy for any loans funded by goeasy, while goeasy will have ownership of these loans. Once the pilot is completed, the two companies to work toward a long-term partnership agreement.
Image courtesy Mogo