Canadian Fintech: KOHO Gets Deeper into Lending
NetNow raises. ZayZoon partners with Scotia. D1g1t takes on PureFacts.
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💰 Funding
NetNow, a platform for manufacturers to underwrite their customers for deferred payment plans, raised $1.8m.
This process is called trade credit and is super similar to the lending industry.
Just like lenders use loan origination systems (LOS) to collect information on borrowers to underwrite them, credit managers at suppliers use NetNow to collect information on their clients to underwrite them for “trade credit”.
SecondShop, a marketplace for manufacturers to sell overstocked items at a discount, raised $2m.
Loop, a business banking fintech raised $6.4m.
This brings total funding to $10m since their pivot from Lending Loop, a p2p business loan marketplace.
ApplyBoard, a platform for students to get placed at international universities, raised a $100m credit facility.
ApplyBoard has partnerships with RBC & TD to help international students open GICs, which is a way to prove that you have enough funds to support yourself while studying at a Canadian university
ApplyBoard also has a financing partnership with student lender, Passage, which spun out from ApplyBoard last year.
Ontario Teachers Pension Plan is reinvesting in French health insurance company Alan.
A MESSAGE FROM FLINKS
How To Succeed In The New Age of Fintech
The fintech industry has seen a lot of change over the last couple of years. This evolution brings changing consumer needs that require organizations to learn and adapt quickly and consistently.
Join Jimmy Beauregard and Eddie Beqaj in a 30-minute deep-dive where they discuss the changes in technology, security, and customer behaviour as they have happened pre-, during, and post-COVID and what that has meant in terms of succeeding in this new era of fintech.
Key Takeaways from this live session include:
Changes in consumer behaviour pre-, during and post COVID
The new tech stack that is driving efficiency
How to continue to instill trust in customers with evolving standards of security
🚀 Product
ZayZoon, an earned-wage-access (EWA) provider partnered with Scotiabank.
Scotia will refer their business clients to ZayZoon.
ZayZoon integrated directly into Scotia’s payment APIs giving them access to real-time money movement.
Last year, BMO’s US bank also partnered with an EWA provider, DailyPay.
Wealthsimple has roughly doubled its AUM to $50b and increased deposits by $20b in the last year.
In the last month, Conquest, a financial planning software for wealth advisors landed deals with Raymond James, Manulife & Desjardins.
Fidelity, who is also a client, invested in them last year.
KOHO launched a line of credit product via an embedded lending partnership with Propel.
Propel is a Canadian subprime consumer lender with direct and indirect lending businesses in the US & Canada.
Propel also has an embedded lending partnership in the US with Pathward Bank.
This will be KOHO’s 2nd lending product launch this year. They released overdraft protection in April.
Oliu, a digital ID tool incubated by ATB, partnered with Credivera, a service that verifies workforce credentials.
Oliu is already used to access government websites in the province of Alberta.
D1g1t, a risk management platform for wealth advisors, launched billing features (fee calculations, invoicing, payment, etc.)
This puts them in direct competition with fellow Canadian fintech PureFacts, which was acquired by PE this year.
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Have a great week! See ya 👋
Great content this week as usual. I had no idea Lending Loop became Loop. I am a fan of successful pivots, and it sounds like their pivot into business banking is going pretty well!