Mogo Finance Technology Inc. (NASDAQ:MOGO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET


Mogo Finance Technology Inc. (NASDAQ:MOGO) Q3 2019 Earnings Conference Call - Final Transcript


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David Feller

in Toronto, the need for financial control early on is greater than ever. What's more, 68% of Canadians don't think they'll have enough money to retire. So it's clear that existing solutions aren't working.

In fact, you could argue they have actually contributed to the problem, like credit cards that make it too easy for people to overspend. This is why we believe there is going to be a secular shift to financial health. It's not going to be enough to just have great products and make them available in a mobile-first app. You have to design and build an experience that makes it easy for consumers to adopt the right behaviors and help them get in control of their finances. This is what's driving our strategy. It's also our mission.

A recent research report highlights how important solving this is for consumers. It showed that 87% of people say nothing would make them happier and more confident than getting in control of their finances. And this mission continues to guide us and something that is clearly reflected in our latest initiative. Over the last quarter, the team has been busy working on what is perhaps our biggest initiative yet, MoneyUp. It's not only a new campaign, but an updated experience that's designed to make it even easier for our members to improve their finances.

One of the key insights we identified in our research is that most people really don't know what they need to do to get financially healthy. They have some general thoughts, but not something that's simple and easy to follow. This insight led to the four habits of financial health. The experience is now built around these four habits and incorporates our products within the habits. The more our members follow and master these habits, the more likely they are to achieve their top financial goals such as getting out of debt and building wealth.

It's also important to note that the experience doesn't depend on using our actual products. Members can follow our strategy and choose to use other products that meet their criteria, although our goal is to ensure that each of our products are truly best-in-class and it's a combination of the experience and the products that we believe will optimize the ability for our members to achieve their goals. In terms of the habits and our actual products, monitoring and protecting your credit score is critical if you want to achieve your goals. A bad credit score could cost you thousands in increased interest and becoming a victim of ID fraud can derail important goals like getting a mortgage.

We make it easy to do with our free credit score monitoring and ID fraud protection at only $8.99 a month. Controlling your spending is key to avoid getting into debt and helping you get out of debt as well as being able to save and invest and build wealth. Research clearly shows that people who use credit cards overspend. In fact,