Andrew Graham is the CEO of Borrowell, a Toronto-based marketplace lender. Here, Graham explains why the sector is so hot right now and how his company plans to win in 2016.
Marketplace lending is exciting to us because, right now, there’s $82 billion of credit card debt in Canada, and almost everybody pays the same rate: 19% or above. People are paying more than they should be.
“What Borrowell does is allow people to get a quote and rate tailored to them—it’s kind of the Uber-ization of finance. It’s a model that’s already pretty prevalent in the U.S., where marketplace lending is doubling every year, and in the U.K.
“In Canada, interest rates are higher than the average and default rates are lower, so there are even more reasons for consumers to switch. We know there’s a real hunger among consumers for different and better options.”
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