goeasy (GSY) TD Financial Services & Fintech Summit summary

Business overview and market position

• Focuses on providing consumer credit to non-prime Canadians, targeting about 9 million individuals with a CAD 200 billion addressable market.

• Holds approximately CAD 4 billion in consumer loan balances, representing just under 2% market share.

• Offers six consumer loan products, including personal, home equity, automotive, and retail financing.

• Has compounded revenue at 13% and net income at 30% annually over 20 years.

• Maintains a 20%+ return on equity as a financial hurdle rate.

Product and distribution strategy

• Expands addressable market by widening APR range and adding new products, now able to target about half of the CAD 200 billion market.

• Plans to launch a non-prime credit card to further increase market reach.

• Operates through 400 retail branches/kiosks, a digital/mobile platform, and 10,000 merchant partners.

• Digital and point-of-sale channels are the fastest-growing sources of new clients.

• Branch network remains important for servicing, underwriting, and collections.

Credit card launch and risk management

• Credit card product aims to create ongoing customer relationships and increase share of wallet.

• Expected credit card interest rates will be in the mid- to high-20% range, similar to existing products.

• Uses data from credit agencies and existing customer performance to model credit card risk.

• Employs a gradual, test-and-learn approach for new product rollouts, starting with trusted customers.

• Hired experienced credit card leadership to support the launch.