Vancouver-based Mogo Finance Technology Inc. (TSX:GO) has launched its Mogo Account, accompanied by an iOS mobile app, designed to work alongside a customer’s current bank account, adding value that they feel isn’t being offered by their current banking institution.
The Mogo Account reduces the process of opening an account down to a few minutes, without the need to make the psychologically significant jump from their tried and tested traditional bank in favour of a relatively untested start-up, since the Mogo Account is simply complementary to a customer’s existing bank account.
Mogo CEO David Feller puts increasing acceptance of digital banking down to millennials and their ready adoption of whatever-works software combined with a lack of brand loyalty.
“As we all get used to experiences like Uber, we’re now expecting the same speed, convenience and value in the other important areas of our life, like our finances,” says Feller. “To date, we’ve invested over $120 million in our platform. This has enabled us to build a quicker experience, like opening an account in a fraction of the time that it takes to open a bank account, while giving people immediate value, such as instantly finding out their credit score—all for free.”
Mogo now has more than 225,000 members using its digital-only banking service.
The Mogo Account gives customers access to a free spending account with no monthly fee, accessible through a free Platinum Prepaid Visa Card, and an instant pre-approval on a personal loan for those who need credit.
“Now that Tangerine is owned by one of the big 5, we believe that we’re the leading challenger brand to the banks,” said Mogo Chief Financial Officer Greg Feller. “In fact, we’re growing faster than any of the top six banks in Canada, and faster than the top credit unions. Within the last year alone we almost doubled our member base, which grew by 100,000 new members, and we expect that with our new digital account, app and free credit score offering, we’re well positioned to reach our goal of one million members over the next three years.”
The free instant credit score is a partnership with credit bureau Equifax Canada, using their ERS 2.0 Risk Score, updated monthly, which is the score that Equifax provides to consumers upon request, and not the full credit score that Equifax provides to third parties when they ask for an evaluation of your creditworthiness.
“We know that Mogo’s mission is to build the best digital banking experience, providing innovative products that are disrupting the market to bring value to Canadians,” said Chris Briggs, Chief Marketing Officer at Equifax Canada. “We’re excited to partner with them to bring a free credit score, the first available with free monthly updates, to consumers. This is an exciting innovation for the Canadian market.”
Mogo plans to continue building out its platform, with the expectation of launching more digital financial products by the end of 2016.
“Our goal is to build the best digital banking experience in Canada and eventually offer all the products you need to manage your financial health, all digitally, and with far less fees than what the banks and even credit unions charge,” said David Feller. “Our new MogoAccount and mobile app are a key milestone on this journey.”