Marble Financial (CSE:MRBL) is employing socially-responsible lending and FinTech solutions to provide Canadians with a second chance to rebuild their credit
SmallCapPower | July 18, 2019: Rising consumer debt levels have become a worrisome trend in our society. This will ultimately lead to more personal bankruptcies, which hurts the economy as a whole. That being said, one Canadian FinTech company MLI Marble Lending Inc., doing business as Marble Financial (CSE:MRBL) (OTCQB:MRBLF), is employing socially-responsible lending and FinTech solutions to provide overly-indebted Canadians with a second chance to rebuild their credit.
By utilizing technology, Marble Financial expects to help rebuild its customers’ credit in less than half the time as compared to the current traditional method through a Consumer Proposal (a Consumer Proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee, who works with the debtor to develop an offer to pay creditors a percentage of what is owed to them or extend the time the debtor has to pay off the debts, or both, as an alternative to filing for bankruptcy). Marble believes its clients can rebuild their credit and re-enter mainstream banking in three years by exiting their consumer proposal early with a Marble loan, as compared to the traditional Consumer Proposal process of eight years or more.
For reference, more than 70,000 Consumer Proposals were filed in Canada in 2018, up 9% from the year before. And, the Canadian consumer insolvencies market is valued at $15.1 billion, according to the Office of the Superintendent of Bankruptcy Canada.
Marble Financial’s method works as follows:
- Marble partners with Debt Solution companies who get borrowers the most competitive settlement and marketing companies focused on consumers with bruised credit
- After the individual has been in the consumer proposal for some time and has experienced the pain that comes with no access to credit, Marble then pays out remaining balance of the consumer proposal, which gives borrowers an immediate boost to their credit score
- The monthly payments are similar to the consumer proposal payment and the borrower is discharged from their consumer proposal and has started to rebuild their credit
- As borrowers repay their Marble loan, Marble offers incentives to help accelerate debt-settlement repayment
This method is enhanced with the use of the Company’s online platform, which provides budget & expense tracking tools, banking & credit card account integration, as well as push notification alerts to email one’s mobile device. With these features, users should never miss a payment, are provided real-time loan status in addition to real-time credit score monitoring and monthly budget monitoring.
A major catalyst for Marble Financial’s growth occurred on July 17, 2019, when the Company announced that it has agreed to acquire Score-Up Inc, a market-leading personal finance and credit management proprietary technology platform, and Credit Meds Corp., an Ontario-based credit coaching company that offers debt restructuring alternatives by utilizing its proprietary financial wellness diagnostic process.
Score-Up’s proprietary technology platform allows consumers to leverage artificial intelligence, data and statistics to visualize and control their finances and credit score on the road back to mainstream financial services, while Credit Meds is a front-end diagnostic tool that will allow Marble Financial to assess the financial health of a consumer and provide the appropriate prescription and recommendations towards financial wellness and recovery.
“Together with Score-Up, Marble is now positioned to complement its lending business with software and subscription tools and services to help underserved Canadians re-build their personal finance and credit,” said Marble Financial COO Karim Nanji in a statement.
Marble Financial added that the acquisition of Score-Up and Credit Meds represents its first entry into additional revenue sources for the Company by expanding its credit wellness offering to the financially underserved in Canada, enabling Marble to aggressively market to the 30% of Canadians with sub-prime or near prime credit that make up $580 billion of the $2 trillion consumer credit industry.
Marble Financial currently has approximately 53.5 million shares outstanding, about 33% of which are held by management, directors, and insiders with 13% of those shares held in escrow. Marble Financial stock rose 5% to close at $0.195 following the announcement on Wednesday.
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