With more people turning to digital banking services, FinTech companies like Vancouver-based Mogo, a company that runs an online lending platform, are taking the demand as an opportunity to scale.
Last week on The Disruptors, Greg Feller, the president of Mogo, sat down with co-host Bruce Croxon to discuss the importance of scalability and going public. Feller last appeared on the show in February 2016, when he addressed some of the company’s troubles shortly after its IPO.
“There’s such a huge opportunity,” said Feller. “It’s a very complex business that requires scale, as far as the team and operations go. It also requires scale in terms of capital…we went public because we needed the capital to grow.”
“We’ve built out this innovative app. We’re bringing multiple solutions in one solution.”
In the last few months, Mogo announced that it reached over 300,000 members. Feller says that while it can be challenging to acquire customers, Mogo’s ability to scale has been in part due to the multiple products Mogo offers its users, including its recent mortgage app and a digital spending account.
“I think we’ve actually cracked the code there through a number of different ways,” said Feller. “We’ve built out this innovative app. We’re bringing multiple solutions in one solution.”
Feller added that low customer acquisition costs and advertising in Post Media’s newspapers has also brought the company more customers, as people are looking to switch to digital banking services.
Assessing Mogo’s customer acquisition costs, Croxon said that if Mogo “can keep the cost down, we might be on to something.”
Watch the full interview below:
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