Nyble ⎯ Challenging Traditional Financing With Interest-Free Credit Lines

Nyble, an early payroll cash advance provider, is helping Canadians avoid costly overdraft fees with its interest-free product, Nyble Line. We had the chance to talk to the Nyble team and learn more about how they are helping Canadians and changing the traditional banking system in Canada.

First, can you start by explaining what Nyble is and what you want to achieve with this type of financing option?

Nyble’s mission is to enable affordable access to credit for people who are left behind by the financial system. We believe the system is outdated and undervalues many customers who have a good income but sometimes lack the necessary credit profile to access credit, despite having the ability to repay. Because of this, Canadian banks are raking in billions of dollars in overdraft fees each year from customers who can’t access funds in a timely manner. Nyble’s product is designed to provide an accessible alternative to the bank’s overdraft protection, which is tough to get for people who need it the most. With Nyble, users can connect their payroll bank account and access a small credit line of up to $100 within a matter of minutes without credit checks or intrusive employment verification calls. 

Nyble doesn’t charge interest or late fees, what’s the catch?

There is a 14-day trial where users can try out the Nyble platform for free, after that there is a small monthly membership fee of $4.99 after. Additionally, users can opt to tip Nyble if they are happy with the service they received, however, this is optional. Still, it helps Nyble cover the cost of payment processing. 

Right now Nyble offers two advance options, do you have any plans to extend your offerings?

Yes! In the near term, Nyble is working to increase its approval limit to customers who have already established a repayment history with Nyble. 

How is Nyble different from other lenders? Or, even payday lenders?

1. Credit requirements – unlike traditional lenders, Nyble does not conduct hard or soft credit checks and applying does not affect a user’s credit score. Instead, Nyble evaluates customers based on their direct deposit income and banking transactions. 
2. No late fees or interest – There is never any compounding interest or late fees. Banks make most of their income from compounding interest and fees when people fail to pay their bills on time. Nyble believes people shouldn’t be penalized more when they are already going through a hard time. 
3. Easy to access & affordable – users can access funds within a matter of minutes without visiting a branch or filling out long forms. There is a flat membership fee of $4.99 to access the platform, whereas an average payday loan costs ~$51 for two weeks for a larger amount. 

What type of consumer would benefit most from choosing a Nyble line of credit?

Today, customers come from all walks of life. Approximately half of Nyble’s customers have access to a credit card but still choose to use Nyble regularly. This is because Nyble can still be cheaper and more easily accessible than a credit card cash advance (which usually requires a visit to the branch). Most of our customers are also using Nyble to cover a potential overdraft fee when their balance is low (typically a $48 fee charged by the bank per occurrence!). On average, customers are paying over $400 annually in overdraft fees to their banks. 

Do users have to reapply every time they want to withdraw money from their Nyble credit line?

Once a user is approved, they will always have access to the credit line given good repayment history, which is what differentiates Nyble from a typical early payroll or lending product, whose approval amounts can be unreliable and shift over time. 

Users can earn points through Nyble, how does this work and what can they do with the points?

Nyble rewards users with points when they make good money decisions, these may include successful repayments, when a user lowers their NSF fees, or when users maintain a stable bank account balance. With points earned, users can redeem them for gift cards or unlock a higher tier of approval amounts on their Nyble line. The rewards program is still in development; however, users can start accumulating points now. 

Nyble automatically processes repayment, what happens if a user doesn’t have sufficient funds in their bank account?

Nyble uses the latest payment rails to minimize the chance of an overdraft, which is the problem we’re trying to solve! Our technology checks the account to see if there is a balance before it puts a payment through, and if a user doesn’t have sufficient funds, the payment is rescheduled for another time when the funds do arrive. Users can also repay anytime by logging into the website or app. 

Do users need to download the Nyble app to take advantage of your line of credit?

Not at all! Users can both use Nyble through the website (nyble.com), or by using the mobile app. 

Finally, do you have any new or upcoming launches you can tell us about?

The Canadian financial system is lacking in innovation compared to other leading countries such as the U.S. and UK. We believe high overdraft fees are just the tip of the iceberg. Nyble working on launching a full suite of financial products to better serve Canadians.