To read the full press release about the acquisition of Refresh Financial by Borrowell, click here.
Through the power of innovative technology such as AI, machine learning, and APIs, countless businesses are challenging almost every aspect of the traditional banking system. Alternative lenders, money transfer services, payment services, crypto-currency, robo-advisors, and online banks, to name a few, make up the ever-evolving Fintech industry.
A major player in this industry is Borrowell. An alternative financial services provider who was the first to provide free credit scores and reports in Canada. They’ve grown significantly since their establishment, and are currently on the move to acquire Refresh Financial.
Who is Borrowell?
Borrowell was co-founded by Eva Wong and current CEO Andrew Graham in 2015. Since their establishment, Borrowell has been named as one of Canada’s top growing companies by The Globe and Mail. Borrowell is a Canadian company that offers consumers access to financial products and services such as loans, credit reports, credit monitoring, and educational tools and materials. Through their AI-powered Credit Coach, Borrowell is able to provide Canadians with personalized recommendations for credit products and tips on credit building. Ultimately, Borrowell strives to educate and make credit accessible to all Canadians.
Who is Refresh Financial?
Refresh Financial, also a member of the Financial Technology Industry, is a Canadian company based in British Columbia. Refresh Financial provides credit building products to all of Canada (excluding Saskatchewan). Their mission is to help Canadians build credit so that they can gain access to more affordable credit products. Since their founding in 2013, they’ve helped over 100,000 Canadians with their innovative credit building solutions.
Why is Borrowell Acquiring Refresh Financial?
Given Borrowell’s mission to make financial products more accessible and Refresh Financial’s mission to help consumers build credit, the two combined have the synergy required to create better solutions. By acquiring Refresh Financial, Borrowell will be equipped with additional “products focused on financial well-being”. This in turn will allow Borrowell to better achieve its mission of making credit more accessible.
By integrating Refresh Financial’s products and employees into Borrowell’s business framework, they’ll be able to reach a wider range and a larger number of Canadians. Moreover, by acquiring Refresh Financial, Borrowell will be “doubling its revenue and employee base”.
How Will Refresh Financial’s Acquisition Affect Consumers?
The acquisition of Refresh Financial will allow Canadians to access credit products and services more easily. The addition of Refresh Financial’s products to Borrowell’s product line will bring Canadians affordable and accessible “loans and secured cards to help them manage their expenses, build their credit history and take their next steps towards financial stability.”
Borrowell and Refresh Financial are expected to close the deal during the first quarter of 2021. Their aligned mission along with their combined business know-how will not only increase the company’s financial performance, but they’ll be better able to achieve their mission of providing Canadians with accessible credit.