goeasy – Twimbit DX 2021 Rank 5

Outcome

Key highlights

Introduction

goeasy provides loans to people who are turned down by traditional banks. These are prime individuals who do not have enough income or credit rating for a bank to take the risk of default. The firm paves the way for such individuals to find capital access and solve their financial issues.

easyfinancial is the Company’s financial services arm, launched in 2006 to provide instalment loans to non-prime customers with limited access to traditional bank financing products.

Transformation

The first major initiative by goeasy in 2020 was the end-to-end upgrade of the core lending platform. With a plan to develop new lending products, expand channels of distribution and leverage new technologies to disrupt and innovate, the latest technology is a huge step towards transformation.

The new system will provide a frictionless digital experience and create a more intuitive and flexible platform. goeasy has spent two years in retail and development (R&D) to build the fully cloud-based SAS lending solution bottom-up, which is in the pipeline for release in 2021. The key benefits of the new system will include:

• A global platform
• Multi-product capability
• Multi-currency and multi-language solutions
• Flexible web service architecture based on Salesforce

Next is the proprietary algorithm built by goeasy to evaluate non-prime customers. The easyfinancial data repository platform has 13.7 GB of data and analyses 66,244 unique data points for account qualifications.

Finally, the third element of the firm’s move to digital is online and mobile e-commerce. The number of online applications by non-prime customers via online platforms was 44% of its total loan applications in YTD September 2020.

Advanced data modelling based on cloud computing, machine learning and advanced analytics is the key driver of the loan portfolio for goeasy and its profitability growth.

The easyfinancial data repository has:

• 13.7 TB of data
• 66,244 unique data points
• 4.61 million applications
• 523,740 unique customers

Key customer data collected for machine learning:

• Customer web analytics
• Machine and device fingerprints
• Customer income and liabilities
• Customised credit report characteristics as well as spending and payment algorithms
• Banking and credit card transactions history (one year)

Advanced modelling and analytics

• Eligibility and pre-qualification rule sets
• Proprietary customer behavioural risk scores
• Comprehensive algorithm-based affordability assessment
• Price elasticity testing and optimisation
• Fraud and document verification systems
• Proprietary collection scores and treatment optimisation

In October 2018, easyfinancial launched a new and enhanced digital loan application platform. This unique online credit application comes with a design set to optimise web traffic and provide easyfinancial customers with a streamlined and personalised experience. The said application is both faster and more accessible for the customer. More importantly, it enables the Company to optimise its online sales funnel more effectively, drive increased conversion, and integrate other new digital technologies into the application flow.