Easy Financial Market and Competitors

Part
01
of three
Part
01

High-Interest Loan Market Size

The market size of the high-interest loan market in Canada for 2010 and 2014 are $1.21 billion, and $2.19-billion respectively. According to the Canadian Consumer Finance Association, information on the recent size of the high-interest loan market is not available due to a decrease in the number of businesses in the industry, difficulty of doing business, and regulation of the industry by the authority.

High-Interest Loan Market Size and Overview

Other Market Statistics

  • The number of high-interest loan (payday loan) businesses in Canada decreased by five percent, from 1,434 in 2014 to 1,360 in 2017.
  • Currently, there are about 961 registered high-interest loan businesses in Canada.
  • The number of Canadians using high-interest loan increased from one in 50 in 2009 to about one in 25 in 2014.
  • Almost two million Canadian use the services of high-interest loan industry per annual.
  • According to Canadian Consumer Finance Association, the high-interest loan industry in Canada has experienced a negative growth in most recent time due to over regulation of the industry by concerned authority and proliferation of unregulated e-lenders.
  • The number of consumer payday loan insolvencies in Ontario increased from 32% in 2017 to 37% in 2018.

Research Strategy

The research team leveraged information publicly available on the Canadian high-interest loan industry authorities and associations databases, such as the Canadian Consumer Finance Association, the Atlantic Provinces Economic Council (APEC), the Consumers' Association of Canada, and Association of Community Organizations for Reform Now (ACORN), as well as media source like the Globe and Mail Inc, the Jerusalem Post and BNN Bloomberg to provide most of the requested information.

While we were able to uncover the size of the industry in 2010 and 2014, information on the recent (2015 and 2019) market size is not available (it has not been computed, possibly), according to the Canadian Consumer Finance Association. Search for the 2015 and 2019 market size of the industry in market reports further support this claim as no market report with this information was found, not behind a paywall. Attempts to triangulate a proxy for 2015 and 2019 were made but lack of data points such as the annual compounded growth rate (CAGR) from 2014 through 2019, average revenue per business in the industry, and average high-interest loan borrowed by Canadians undermined our attempts.

Note, the term payday loan and high-interest loan were used interchangeably throughout the report.

Part
02
of three
Part
02

EasyFinancial Competitors

Six true competitors to Easyfinancial have been located. All are in Canada. As Easyfinancial provides financial services, including personal loans, bad credit repair, debt consolidation and home and auto security solutions, the competitors reflect that. It should be noted that Easyfinancial is known as goeasy Ltd, as reflected in this source and this screenshot.

Fairstone

Money Mart

Mogo

Alpine Credits

Borrowell

  • Borrowell offers personal loans, mortgages, Borrowell offers credit scores for free without applying for credit. Loan offers include an interest rate and an origination fee.

Loanaway

Part
03
of three
Part
03

EasyFinancial Competitors Analysis

Easy Financial's main Canadian competitors include Fairstone, Mogo, Borrowell, and Loanaway. Each of these companies has a different approach and target. Most of these competitors use color psychology in their ads. The most significant difference in different company ads is that some are sophisticated, and some are very primitive, using cartoon-like characters to target a specific sector of the viewers.

Fairstone

  • No ads ran this month
  • Video: Fairstone, banks, and payday lenders. What’s the difference? Typically, when Canadians need credit, they turn first to the bank. Banks offer better interest rates but lend to high credit-scoring individuals. If someone can't qualify for a conventional bank loan, they can switch to a payday loan company.
  • Display: Fairstone’s display ads are varied, smooth, and done with a lot of “power” purple.
  • 51% of this site's ads are standard.
  • 0% of this site's ads are native
  • 49% of this site's ads are video.

Money Mart

  • Eight ads ran this month
  • Video: Money Mart Cheque Cashing — Canada Describing one of its components using a “newsy” presentation.
  • Display: Money Mart's display ads focus mainly on their storefronts and their logo. These ads are unsophisticated.
  • 96% of this site's ads are standard.
  • 2% of this site's ads are native.
  • 1% of this site's ads are video.

Mogo

  • Nineteen ads ran this month.
  • 90% of this site's ads are standard.
  • 0% of this site's ads are native.
  • 10% of this site's ads are video.
  • Video: A look inside Mogo Is an informative ad showing the company and employees.
  • Display: Mogo's display ads focus on loans, the company's Apps, and Bitcoin. They use a lot of primary colors to grab the attention of the viewer.

Borrowell

Loanaway

  • No ads ran this month.
  • 99% of this site's ads are standard.
  • 1% of this site's ads are native.
  • Loannaway’s video ads focus mainly on credit score and feature cartoon characters.
  • Display: Loanaway's display ads focus mainly on “bad credit,” and they use the color green to signify money.




Sources
Sources

From Part 01
Quotes
  • "The payday loan industry in Canada has grown rapidly to an estimated 1,400 retail outlets across the country, with nearly two million Canadians a year make use of payday loans."
Quotes
  • "The payday loan market comprises borrowers who seek very short term, small dollar credit – or liquidity, to be precise – for which they tend to be willing to pay a high price."
  • "A payday lender shall provide a written disclosure statement to the borrower or prospective borrower before entering the payday loan agreement which must: Indicate that the payday loan is a high cost loan"
From Part 02