Canadian Fintech: Rocket Mortgage Pulls Out 🚀
Revolut pulling in? HomeEquity Bank launches a new Boomer product.
Good morning! Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.
Every Monday we break down the hottest topics in your industry in under 3 minutes.
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💰 Funding
FutureVault, a Toronto based document management platform for financial advisors raised USD $3m.
🤝 M&A
Valsoft, a Montreal based private equity firm focused on small, niche software businesses acquired DCS, a US based cheque cashing platform.
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1,000 attendees
Executives from every Canadian bank
Founders from over 300 Canadian fintechs
Tickets go up in price by $100 tonight.
🚀 Product
HomeEquity Bank, a schedule 1 lender best known for their reverse mortgage products launched a product called HomeBridge, designed to help Boomers use their home equity to give their kids an early inheritance.
HomeBridge was launched in partnership with Koru, the venture builder arm of the Ontario Teachers Pension Plan.
This is Koru’s second online lending venture. Their first was Fig, a consumer lender launched in partnership with Fairstone Bank.
Beautifi, a BC based lender to cosmetic surgery patients launched a surgical equipment lending division via a partnership with TFG Financial.
I love these types of lending models where financing is provided to both the business and to the business’s customers. Another good Canadian example of this is Bridgepoint Financial, a litigation lender that finances law firms and their clients court cases.
Rocket Mortgage is pulling out of Canada.
America’s largest mortgage lender entered Canada in 2020 by acquiring Edison Financial, a mortgage broker.
In 2022 they rebranded Edison as Rocket Mortgage Canada and started lending directly.
Revolut is hiring a Canadian CEO.
The UK based neo bank entered in 2019 and winded things down two years later citing difficulties receiving banking licenses.
I highly doubt that they’ll try to get a bank charter this time around. The more likely route would be to become a dealer like Wealthsimple and/or become a direct issuer like Neo.
WonderFi, the crypto exchange is expanding beyond crypto.
The firm is partnering with Australian fintech Eightcap, who will act as their trading tech and liquidity provider.
⚖️ Policy
S&P is considering allowing companies domiciled outside of Canada to stay on the S&P / TSX Composite index.
The move comes amid several large Canadian firms relocating to the US.
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Have a great week! See ya 👋