Propel is a fintech startup that it based in Toronto but has primarily been serving the United States market with its credit inclusion services.
This week, the Canadian fintech announced that it is entering the local market through Fora Credit.
“Consumers across the United States have trusted Propel and its operating brands for more than a decade to deliver flexible credit solutions and we are delighted to bring our offering home to Canadians,” stated Clive Kinross, Propel’s Chief Executive Officer.
Propel’s new brand Fora, initially available in Alberta and Ontario, is described as a “convenient online credit solution for underserved Canadian consumers.” It was created to “provide Canadians with access to a fair, transparent and flexible credit solution.”
25% of Canadians are either unserved or underserved in the credit market, according to TransUnion’s “Empowering Credit Inclusion Global Report.”
In many cases, this is due to a lack of access to credit through traditional financial institutions, according to Propel.
“We fully expect that Fora will become a leading solution for the 25 per cent of Canadians who are unable to access credit through traditional financial institutions,” said Kinross.
Through an AI platform, Fora enables consumers to apply online for personal lines of credit through a digital application experience. The brand promises no origination fees, annual fees, late fees, or pre-payment penalties.
Fora Credit will expand to other provinces across Canada over the coming months, the CEO noted.
“I could not be prouder of the Propel team who has been working with tremendous energy and excitement to launch Fora ahead of schedule,” Kinross said. “We are excited to bring our proven expertise in online lending and our outstanding service teams to our home market after many years of operating programs successfully for U.S. consumers.”
To support the growth of this new Canadian portfolio, Propel announced it has secured a revolving credit facility with an aggregate initial capacity of approximately C$26 million shared between senior lender CWB Maxium Financial, a part of the Canadian Western Bank Financial Group of companies, and junior lender Bastion Management, an existing lender to Propel.
“We are pleased to partner with CWB and Bastion on a credit facility for our Canadian business,” Kinross stated, “and are looking forward to advancing on our strategic plan through this opportunity for geographic expansion and serving lower-risk markets.”
In October, Propel finalized a partnership with Pathward, a financial empowerment company, to be Pathward’s primary consumer lending-as-a-service fintech partner.
“Our ability to … work with highly skilled, sophisticated, and reputable partners is a cornerstone of our success as a leading fintech company,” added Kinross.
Last year, the Canadian fintech closed its initial public offering on the Toronto Stock Exchange, raising $61 million.