Photo - QuadFi
52770

QuadFi

We use AI/ML and big data to create financial inclusion

Canada, Toronto
Market: Financial services, Artificial Intelligence
Stage of the project: Prototype or product is ready

Date of last change: 17.06.2021
Show contacts
0
equalizer from 2000
help
Calculated and estimated occupancy of the project (more about ratings)
My rating
1
2
3
4
5
6
7
8
9
10
Average rating:
 

Idea

Young people and immigrants can't access affordable loans because they lack a full credit history. We have a novel AI/ML model that uses alternative financial and academic data to bridge the gap. Our analysis is significantly more accurate than FICO and allows us to provide our customers with affordable loans.

Current Status

We are raising our equity round and have a number of returning and new investors. We have a fully developed underwriting model and end-to-end lending platform. We have tested our model on live data and have over one year of exceptional performance (zero defaults, no late payments, through the pandemic). QuadFi has a partnership agreement to enter the US market in 2021, faces few competitors in the US and none in Canada.

Market

Our solution works across secured and unsecured credit verticals. We are currently focused on unsecured student and personal loans. This is a approx. $3 Trillion market growing at 5-7% per year.

Problem or Opportunity

One hundred million US and Canadian consumers (~30% of the total population), and billions globally, are in financially excluded Invisible Credit Groups (ICGs) due to the shortcomings of current risk scoring models. This market is growing rapidly due to immigration -- millions of consumers can’t access affordable and fair financial products and there are currently no fair and effective solutions to address this problem.

Solution (product or service)

Our underwriting model is based on three distinct layers which are adjusted over time. We use traditional financial, open banking, and personalized academic data to underwrite the 30% of North America that are currently unrated.

Our approach builds upon academic and government research on the positive impact of alternative data. We have tested, confirmed and expanded these insights with real world data and the latest AI/ML advancements. We are incorporating novel and fast-developing data sources including overseas credit and banking data to further refine our modeling.

Competitors

No competitors in Canada. Upstart closest in the US. Very few companies have reached our level of sophistication in AI/ML underwriting and we have a unique model.

Advantages or differentiators

No one else is offering this service -- the demand is huge and unmet -- we help our customers get better rates and allow partners to identify great customers years before their competitors. Big data is the future of inclusive international banking and we are at the forefront.

Finance

We have recurring revenues from our existing loans and will deploy $50M+ in the next twelve months. We anticipate raising another round of financing in 12-18 months at a 5-6x of our current valuation. Our cost structure is very low (about $20K cash burn per month) and we anticipate profitability, based on conservative estimates, within two years.

Business model

Our business model is based on offering affordable loans to people who couldn't otherwise borrow -- cost of (our) capital is a key variable. Our main metrics are interest saved (for our clients) and cost of customer acquisition (CAC). We are targeting top-down and bottom-up, online and offline strategies.

Money will be spent on

Data acquisition, modest expansion of team, marketing, and partnership development.

Offer for investor

Opportunity to realize strong returns while addressing historic inequalities that negatively impact young people and immigrants. Potential to follow QuadFi to the global level as we incorporate new data sources from countries of emigration. Relentless focus on immigrant needs -- in a continent that will continue to grow demographically, because of immigration.

Team or Management

Risks

Cost of capital, future competition, and regulatory risk are the key considerations for us. We have plans to address each.

Incubation/Acceleration programs accomplishment

Angel investment and multiple grants from the Canadian and Ontario governments supported our development.

Won the competition and other awards

One of three nominees for best Fintech, best AI company, and best CEO at the last pre-Covid Canadian AI and Fintech awards (2019).

Invention/Patent

The model is proprietary and the CEO has patents (and a doctorate) with respect to the dynamic weighting of different AI models. One of the key proprietary assets is the data set used to train and test our model.
5,00
1
2
3
4
5
1 voice
Sign in/Sign up
arrow_back
EN
more_horiz
close
visibility285
star0
Add to favorites
Delete from favorites
share
close
thumb_up0
Like
Unlike
Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video