Mogo achieves major milestone, sh*t gets real
VANCOUVER, April 18, 2016 /PRNewswire/ - More than 200,000 Canadians have signed up to become members of Mogo (TSX: GO), the country's leading digital financial platform.
"This clearly highlights that banking is no different than any other industry being disrupted by technology," said Dave Feller, CEO of Mogo. "As consumers increasingly looking for Uber like convenience in everything they do, it's clearer than ever that the traditional way of banking has being left far behind. Passing 200,000 members is a significant milestone for not only Mogo, but also FinTech in Canada. Similar to what we've seen with other disruptors, adoption is being driven by millennials which make up more than half of our members."
As FinTech is becoming more mainstream among consumers, the company attributes the strong rise in members to the growing awareness of the Mogo brand as Canadians continue to gravitate towards more convenient options than the big banks provide. In fact the recent Ernst & Young FinTech Adoption Index expects that adoption rates in Canada could double over the next year.
In Canada, banking is dominated by the Big 6 banks, as highlighted by their $35 billion in collective profits in 2015. Last year, McKinsey released a report stating that banks could lose up to 60% of their retail profits to tech startups over the next nine years. "The reality is, there hasn't been a real challenger to the Big 6 since ING Direct, which was acquired by one of the big banks" said Feller. ING Direct was an online bank that grew to over 1.8 million customers and eventually sold to Scotiabank in 2012 for $3.1 billion.
Mogo continues to focus on building a platform and challenger brand designed to offer Canadians a digital alternative to the banks. "As we continue to expand our platform and improve our digital experience, along with the launch of new products including our upcoming MogoMortgage, Mogo Platinum Prepaid Visa® Card, and our new mobile app, we believe we'll accelerate our member growth and put us on track to reaching our goal of 1 million members within three years," added Feller.
Mogo (TSX: GO) is not a bank—by design. It's a financial technology company focused on offering Canadians a more convenient and engaging digital alternative to the banks. With over 200K members and growing, we are using technology and design to offer consumers online and mobile access to solutions that are designed to help recover and improve their financial health. Whether looking to borrow money, refinance credit card debt, or getting tips on managing their money, Mogo is making it easier for our members to get in and stay in financial control. To learn more about Mogo—recently referred to as the potential "Uber of finance" by CNBC, Toronto Star, and others—visit mogo.ca.
SOURCE Mogo Finance Technology Inc