Canadian fintech firm Financeit eyes more deals after TD buy

Wed Dec 14, 2016 1:12pm EST
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By Solarina Ho

TORONTO (Reuters) - Business has doubled for Canadian financial technology firm Financeit since it purchased the home improvement financing assets of Toronto Dominion Bank and the company is seeking more acquisitions, its founder said.

TD sold its indirect home improvement financing assets, which had a book value of C$339 million ($258 million), in September, to Financeit and Concentra, a provider of services to credit unions, in a deal that added more than 800 merchant dealers to Financeit's portfolio.

Chief Executive Officer Michael Garrity, Financeit's founder, said in an interview the deal had transformed his business, doubling its loan value and revenue, and Financeit would now consider more acquisitions.

"Part of our growth plan is to consolidate the industry," he said. "We're aiming to build a multi-billion dollar company, focused on something the banks aren't very good at. Where banks are playing in that space today, we are active buyers in those divisions."

An initial public offering is also "absolutely" in Financeit's future, but it is not something the company is thinking about on a day-to-day basis, Garrity said.

Founded in 2011, Toronto-based Financeit seeks to enable businesses such as home improvement companies to offer hassle-free payment plans to their customers, with instant credit checks and competitive interest rates and without reams of paperwork and long wait times for checks and approval decisions. Merchants do not pay fees to use the platform.

"That whole transaction happens in under five minutes in a driveway on a mobile device," said Garrity of Financeit's cloud-based platform.

The company, which has processed over $1.5 billion in loans, has quarterly regulatory compliance checks and a fraud prevention process to ensure transactions are valid.   Continued...

A Toronto-Dominion Bank (TD) sign is seen outside of a branch in Ottawa, Ontario, Canada, May 26, 2016. REUTERS/Chris Wattie - RTX2EC8O