Mogo, one of Canada's leading financial technology companies, announced a partnership with 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.