Canadian Fintech: The embedded fintech niche ð§©
BÅde challenges the traditional realtor model. Dealertrack buys biz from Teranet.
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ð° Funding
Teal, an embedded fintech platform, raised $11m. Teal allows 3rd parties to offer white label accounting features.Â
Embedded fintech used to just refer to financial services being integrated at the point of sale. Shopify merchants offering BNPL via PayBright is a great example.
Now players like Teal are creating a market for far more niche embedded fintech products along with payroll (The Nmbr Company), wealth management (OneVest), loans (Fig).Â
BÅde, a discount real estate brokerage, raised $4m.
US & Canadian lawsuits against the high commissions charged by real estate agents show that there is demand for discount home selling options.Â
The low fee agent model like BÅde & Zown or the for-sale-by-owner (FSBO) model like HonestDoor are becoming more popular.
Beacon, an app to help settle new Canadians pre-arrival, raised $5m.Â
Similar to platforms like ApplyBoard that manage the process of student immigration, Beacon is providing settlement services (opening a bank account, getting a phone plan, etc.) for skilled immigrants coming to Canada via corporate employers.Â
ð€ M&A
Trader Corporation, the company that owns AutoTrader (a used auto marketplace) & Dealertrack (a portal connecting dealers with lenders) has acquired Teranetâs collateral management registry.
This deal makes a pile of sense for Trader, which is doubling down on services for Canadian automotive lenders & dealers. The company also owns VinSolutions & Kelley Blue Book, which it acquired from Cox Automotive along with Dealertrack in 2022, when the latter exited Canada.Â
For Teranet however, Iâm scratching my head⊠registries are the companyâs core business. They also have contracts with the province of Manitoba & Ontario to run land titles registries.Â
Other registries like ISC and Dye & Durham have also diversified into complementary technology business like payments and identity verification.Â
A MESSAGE FROM CANADIAN CLUB TORONTO
Hear from Jeremy Wilmot the new CEO of Interac ð£
On Wednesday, June 19, join the Canadian Club Toronto to hear from Interacâs new CEO, Jeremy Wilmot, about how the company is charting a course forward for Canadaâs digital economy.
Register for the event HERE.Â
In his keynote address, Mr. Wilmot will:
Share insights from his first ten months leading one of Canadaâs most trusted financial brands.
Present his vision for Interac and elements of Interacâs new three-year corporate strategy.
Highlight opportunities for Canadaâs economy to advance in the digital age.
Following his speech, Mr. Wilmot will join Global Newsâ Anne Gaviola for an insightful Q&A session, exploring what Interac and the fintech ecosystem at large must do to enhance our digital economy and drive economic growth for all Canadians.Â
ð ProductÂ
OnDeck Canada, a small business lender, has rebranded as Journey Capital. Buckle up for a confusing brand historyâŠ
OnDeck Canada used to be called Evolocity before being acquired by US lender OnDeck in 2019.Â
Then in 2020, OnDeck was itself acquired by Enova, another US lender.
In 2022, OnDeck Canada completed a management buyout from Enova, but decided to keep the OnDeck Canada brand.
Now the Canadian lender is independent from OnDeck in both equity and brand ð
Neo Financial will start reporting tradelines to Equifax. They began furnishing data to TransUnion last year.Â
Credit bureaus have been trying to keep up with the popularity of fintech lenders. In most cases, fintech credit products like BNPL are still not collected by the bureaus.Â
Square, a point of sale payment processor, launched âtap to payâ on iPhone in Canada.Â
Appleâs âtap to payâ feature came from their purchase of Montreal based Mobeewave in 2020 for $135m.
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Have a great week! See ya ð