QuadFi

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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

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

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

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.