Newly launched Partner Lending platform
provides significant opportunity to drive subscription &
services revenue
VANCOUVER, Oct. 8, 2019 /PRNewswire/ - Mogo
Inc. (TSX:MOGO) (NASDAQ:MOGO) ("Mogo" or the "Company"), one
of Canada's leading financial
technology companies, today announced a partnership with goeasy
Ltd. (TSX:GSY) ("goeasy") to provide Canadians with personal loans
up to $15,000 with terms of up to 5
years, all available quickly and conveniently from a mobile device
using the Mogo app.
The pilot is expected to go live in October and will allow
consumers to download the Mogo app, get a no-obligation loan
pre-approval, customize their loan, and complete the loan agreement
all in minutes. Once approved for a loan, certain Mogo 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. The two companies have integrated
technology that creates a seamless customer experience and enables
goeasy to only accept loans that meet their credit criteria.
With over 13 years of experience and more than 350 lending
locations across Canada,
easyfinancial offers a full suite of unsecured and secured personal
lending products to the 9.2 million Canadians with non-prime
credit. The company has originated more than $3.3 billion in loans and recently surpassed a
$1 billion consumer loan
portfolio.
"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."
Greg Feller, Mogo's President,
added: "Consumer lending remains one of the highest monetization
opportunities for fintechs globally. 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."
Mogo is a pioneer in online lending in Canada. From its first online loan in 2006,
Mogo has completed more than 1 million loans online and grown its
member base to more than 900,000 Canadians. Over this period, the
Company has made significant investments to build a fully digital
lending platform that automates the process from end-to-end,
creating a fast, friction-free experience for customers. Mogo's
credit platform leverages the power of artificial intelligence
while using thousands of traditional and non-traditional data
points, advanced data modeling and Mogo's own proprietary
scorecards to enable instant decisioning. The Company's flexible
technology platform also enables the use of best-in-class
technology partners to automate the loan flow and forecast
performance.
Under the terms of the arrangement, Mogo will receive
compensation from goeasy for any loans funded by goeasy, while
goeasy will have ownership of these loans.
Upon successful completion of the pilot, Mogo and goeasy expect
to work toward a long-term partnership agreement.
About Mogo
Mogo — a financial technology company — offers a finance app
that empowers consumers with simple solutions to help them get in
control of their financial health. Financial health continues to be
the #1 source of stress across all demographics and highest among
millennials. At Mogo, users can sign up for a free account in only
three minutes and get access to six products and solutions that
help them monitor their credit score, protect themselves from
identity fraud, control their spending, and borrow responsibly. The
Mogo platform has been purpose-built to deliver a best-in-class
digital experience, with best-in-class products all through one
account. With more than 900,000 members and a marketing partnership
with Canada's largest news media
company, Mogo continues to execute on its vision of becoming the
go-to financial app for the next generation of Canadians. To learn
more, please visit mogo.ca or download the mobile app (iOS or
Android).
Forward-Looking Statements
This news release may contain "forward-looking statements"
within the meaning of applicable securities legislation, including
statements regarding the expected launch date. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual financial results, performance or
achievements to be materially different from the estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are
not guarantees of future performance. Mogo's ability to increase
fee-based revenue and secure additional lending partnerships are
subject to a number of conditions, many of which are outside of
Mogo's control. For a description of the risks associated with
Mogo's business please refer to the "Risk Factors" section of
Mogo's current annual information form, which is available at
www.sedar.com and www.sec.gov. Except
as required by law, Mogo disclaims any obligation to update or
revise any forward-looking statements, whether as a result of new
information, events or otherwise.
View original
content:http://www.prnewswire.com/news-releases/mogo-announces-a-digital-lending-pilot-with-goeasy-ltd-300933491.html
SOURCE Mogo Inc.
