Money as we know it has been around for centuries. The funny thing is, when you think of the actual experience of banking, managing your money, and getting credit, it hasn’t evolved all that much (especially considering all those technological advances we’ve had). What gives?
Mogo was born out of the idea that banking in the 21st century should be different from what it was. Because when 1 in 3 millennials are open to switching banks, not “at some point in the future,” but in the next 90 days*, you know that something’s pushing them away.
We’ve got a few ideas. Here are five things about the whole banking experience that we think could use
a little a lot of improvement:
1. If it walks like a bank and talks like a bank… run.
Let’s be real here. A bank that’s represented by a guy who looks like your dad in a bowler cap isn’t exactly relatable. A bank that’s so boring and jargon-y that you miss reading your Science textbook? Bleh. And given that 71% of millennials say they’d rather go to the dentist than listen to what banks are saying*, we’re guessing that you feel the same. (If we ever start sounding like a bank, let us know that we should check ourselves before we wreck ourselves via the feedback form on our website.)
2. Banking takes forever.
Between scheduling an appointment at your bank and then going through with the meeting, the whole getting-a-loan thing is kind of tedious. Then it might take the bank a week or more to get you the money for your personal loan. Maybe that’s why 58% of young adults would rather borrow money from friends or family over a traditional institution**—it probably wouldn’t take as long. At Mogo, your loan gets funded as soon as the same or next day. Plus it takes less than three minutes to create a MogoAccount, which gives you a credit decision, gets you in line for a free reloadable Mogo Prepaid Visa Card™, and doesn’t affect your credit score.
3. It’s frickin expensive.
74% of millennials say that it’s normal to have financial debt**. That’s messed up. Our stunning black-on-black Prepaid Visa Card has no monthly fee (debit card fees should’ve been extinct long ago, just sayin’). With our loans, you also get Levelled Up to even lower rates or larger loan products when you make your payments on time. If you’ve ever been hit with a $45 NSF fee because you overspent on your debit card, you’ll be happy to know that you can’t get one with a MogoCard.
4. Where’s the tech at?
Most banks are using legacy technology (meaning it’s been around for a long time) that isn't built to deliver a next-gen experience—some of them are even still using old card-reader technology. We’ve made it possible to open your MogoAccount, apply for credit, and get your questions answered, all online. Got access to the internet? You’re set. Did we mention that you can opt in for Mogo Smart Alerts to get email/text reminders of upcoming payments? Technology for the power of good. Yes, it’s a thing.
5. Stuck in debt? Good luck getting out.
If you’ve ever felt like banks are more interested in keeping you in debt than helping you manage your finances properly… well, you’re not alone. We think that financial empowerment is good for both our customers and for business. That’s why Mogo motivates you to get out of debt through gamification: we’ve turned the simple (but important!) act of making a payment on time into something that helps you Level Up to a lower rate. Because if Super Mario has taught us anything, it’s that the adrenaline rush of unlocking new levels is kind of addictive.
A post-bank future?
So where does that leave the financial world? On the brink of some big changes, apparently. Along with other financial tech startups, we’re creating a post-bank future that helps consumers save more time and that gives them more financial empowerment. Which is in line with what millennials are expecting, since 68% of them say that in 5 years, the way we access our money will be totally different and 33% believe that they won’t need a bank at all*. Yeah, we’re cool with that.