Interview with Marble Financial: Fintech innovator plans expansion into the US

It is a North American problem. In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. Canadians borrow money frequently. Many people live paycheck to paycheck because of high living costs. Then, when unforeseen events occur, over-indebtedness quickly develops.

Figures show us that the situation in the USA is even somewhat more precarious. The pandemic is exacerbating the situation. Around two-thirds of Canadians believe they won't make it through the next twelve months without a loan. The situation is similar in the USA. Both markets are similar. But I would go so far as to say that excluding people from the financial system is a global phenomenon. The industry has ignored people with bad credit for years, which has increased the number of people affected. This is where a potential arises for companies like us. These people want to use financial products, and in the long run, these people are also good customers for these products.

Our software takes into account the individual financial situation and derives precisely tailored instructions for action. We use real-time data, including current credit scoring, credit history, and an overview of past financial transactions, to develop customized recommendations for each customer. Technologically, artificial intelligence is used in the process. This allows us to use the software - provided we have the appropriate database - in new markets as well.

Other services you offer include financial education and a tool that helps users with personal insolvency. How can money be made from broke people?
In Canada, the authorities support people in personal insolvency. There are two forms of personal insolvency: one in which debtors are completely insolvent and one in which debtors repay on average 35% of their debts to creditors interest-free. After an average of sixty months, this process is complete, but the former debtor's credit score is still poor. Here is where Marble comes in. We pay off the creditors' claims directly and take over the debt. The debtor pays us loan installments, including interest, in the range of their original installments. Once the process is complete, we report and make certain credit bureaus know the debtor is now debt-free. Without our help, credit scores often remain poor even after the debt is repaid. With Marble's help, users' credit scores rise faster and return to financial life sooner.

Even during the insolvency phase, we collect data from our users with their consent. Based on this data, we can provide customers with personalized recommendations that fit their financial situation and help them in the best possible way. We also work with strategic partners in this process and support our customers in becoming part of the economic cycle again.

We plan to offer our customers a secured credit card, short-term financing (GIC Saving Loan), and insurance. We are also improving the options for our customers to plan and organize their finances for the long term. In addition to innovations that primarily benefit our users, we also want to enter a new market. We are preparing to expand into the US in the second half of 2021. I have already outlined why the USA is an obvious expansion target. There, too, many people are excluded from the financial system and need our help.

Thanks to our technological platform, which we only need to feed with data from the respective target market, the actual expansion costs are kept within limits. However, we want to implement the US market launch consistently and are aware that this requires targeted and effective marketing. For this reason, we will be raising fresh capital for our market launch in the USA. However, this is not the only pillar on which we will build. A strong partner will accompany us in our expansion. As the US market is ten times larger than the Canadian market, the opportunities outweigh the risks. We look forward to winning customers in the US with our proven products.

The more data we collect and the better we can compare individual data with statistical averages, the more patterns we can identify. These patterns, gleaned from real data, are a valuable basis for developing ideas for new business models. For example, we can improve future product suggestions or look for targeted partners who offer a desired product. Data is the basis for us to understand our users better. On the one hand, this ensures that offers to customers are individual and appropriate, and at the same time, helps us to identify risks in advance. Our partners, such as providers of financial products, also benefit from the latter.

We operate within the legal framework and communicate very openly with our customers. Data helps us find the best solutions for users. This ranges from getting out of bankruptcy to choosing appropriate financial products to improve financial fitness and wellness. If a customer requests that we delete their data, we do so immediately. Personal data is and remains the property of our users and data gathered from the consumer is done with their consent.

We expect growth from our new products and also from our market entry in the USA. The pandemic shows us that these growth expectations are not too high. In Canada, many people are benefiting from support measures and subsidies granted during the pandemic. When these measures expire, we expect even more people to face financial hardship. People in other regions, such as the USA, have also received generous support. Here, too, many people are facing financial hardship. Over the past few months, we have further developed and tested our technology. Coupled with our plans already being implemented, we are well prepared for the coming situation. In addition, we have a much higher profile in the market among potential partners and Marble Financial has now become a strong brand. To put it metaphorically: We have made the final adjustments to the engine and are now looking forward to putting our horsepower on the road!

One of our next partnerships will be in connection with our expansion into the USA. But there are always new potential cooperation partners in Canada as well. While we are already well-positioned in our home market, there are always new developments. Most recently, studies have shown that employee productivity - due to financial stress - is also an issue for employers that they should not ignore because it is associated with higher absenteeism, dissatisfaction and ultimately lower productivity. As a result, we are also considering making our technology available to providers of employee benefit programs.

The pandemic has made many investors more aware of new developments in the financial industry. Many investors missed out on investment topics, such as blockchain and cryptocurrencies, and are now looking very sensitively at potential new trends. The pandemic has accelerated many innovations. After each of our Company announcements, we experience interest. The nature of the inquiries also shows us that we are steadily expanding our investor base. Given the path Marble Financial wants to take together with all shareholders, this attention does us good.