Fig

In Canada's evolving financial landscape, digital lenders are increasingly providing accessible credit solutions. Among them, Fig Financial Inc. stands out as a fully digital platform specializing in unsecured personal loans. Launched in March 2023, Fig represents a strategic venture by Fairstone Bank, a long-standing Canadian financial institution, with additional support from Koru, the venture builder of the Ontario Teachers' Pension Plan. This unique backing positions Fig with both the stability of a bank and the agility of a technology-driven startup.

Fig's core offering focuses on prime and near-prime borrowers seeking flexible financing for various needs, from debt consolidation and home improvements to unexpected expenses. The company prides itself on a rapid, entirely online application process, promising approvals in seconds and fund disbursements typically within one to two business days. As a financial expert, this article will delve into Fig's operational specifics, product details, customer experience, and regulatory standing to provide a thorough understanding for potential Canadian borrowers.

Fig Financial Inc.: A Digital Lending Innovator in Canada

Fig Financial Inc., legally incorporated in Canada as a wholly owned subsidiary of Fairstone Financial Inc., operates as the nation's first fully digital lender within its specific market segment. This ownership structure means Fig benefits directly from Fairstone Bank's Schedule I charter, ensuring a high level of regulatory oversight and consumer protection from its inception. The company's leadership team, including CEO François Côté and Chief Revenue Officer Monisha Sharma, brings extensive experience from both traditional banking and fintech sectors, guiding Fig's strategy to serve a discerning clientele.

Fig’s business model is API-first, allowing for seamless integration into various digital ecosystems, which is crucial for its "Fig Extend" embedded installment loan offering. However, its primary direct-to-consumer channel, "Fig Lend," targets individuals with strong credit profiles—typically those with credit scores of 680 or higher. This focus on prime borrowers differentiates Fig from many alternative lenders that often cater to the underbanked or subprime market. The company aims to provide a convenient, transparent, and competitive option for Canadians who value digital efficiency and clear terms.

Navigating Fig's Loan Products and Terms

Fig Financial Inc. offers unsecured personal loans, meaning no collateral is required, simplifying the borrowing process. These loans are designed to be versatile, suitable for a range of personal financial objectives without the need to pledge assets like a home or vehicle.

Loan Products and Amounts:

• Unsecured Personal Loans (Fig Lend): Available directly to consumers through Fig's digital platform.
• Embedded Installment Loans (Fig Extend): Offered through partner channels, allowing customers to finance purchases directly at the point of sale.
• Loan Amounts: Borrowers can access funds ranging from a minimum of CAD 2,000 up to a maximum of CAD 35,000.

Interest Rates and APR:

Fig offers competitive interest rates, customized based on each applicant's credit profile. The Annual Percentage Rate (APR) for Fig loans ranges from 8.99% to 29.49%. A significant feature is Fig's rate guarantee: the rate approved at the time of application will not increase subsequently, providing certainty to borrowers.

Loan Terms and Repayment:

Repayment periods are flexible, extending from 24 months (two years) to 84 months (seven years). This allows borrowers to choose a term that aligns with their budget and financial goals. Repayment schedules are also adaptable, with options for weekly, bi-weekly, bi-monthly, or monthly payments, facilitating integration into various personal finance routines.

Fee Structure:

Transparency in fees is a key aspect of Fig's offering. The company explicitly states:

• No origination fees.
• No application processing fees.
• No penalties for early repayment.

The only fee mentioned is for late payments, which aligns with Fairstone Bank's Tariff of Fees, typically around CAD 50. This straightforward fee structure minimizes unexpected costs for borrowers.

The Fig Application Experience: Digital Efficiency

Fig's commitment to a fully digital experience is evident throughout its application and onboarding process. There are no physical branches, and all interactions occur online, catering to the modern Canadian borrower.

Application Process and Requirements:

Applying for a Fig loan is designed to be swift and paperless:

• Fully Digital: Applications are completed via Fig's website or mobile-optimized portal, accessible on any device.
• Instant Verification: Identity verification is conducted instantly using bank-level encryption.
• Credit Check: A soft credit check is performed initially to provide a rate quote, which does not impact the applicant's credit score. A hard pull occurs only upon loan acceptance.
• Financial Review: Applicants must provide access to their bank transaction history for the past three months, allowing Fig's proprietary algorithm to assess financial stability beyond traditional credit scores.

Underwriting and Disbursement:

Fig utilizes a sophisticated, proprietary underwriting algorithm that leverages credit bureau data, bank transaction history, and alternative data points. This automated decision engine enables instant approvals, often within 10 seconds, without human intervention. Once approved and accepted, funds are directly deposited into the borrower's linked Canadian bank account within one to two business days. It is important to note that Fig does not offer cash or mobile money disbursement options.

Mobile Experience and Customer Support:

While Fig does not currently offer a dedicated mobile application, its website is fully responsive and optimized for mobile browsers (iOS/Android). This ensures a seamless user experience across devices. For customer support, Fig provides live chat and email assistance, along with a comprehensive online Help Center. The average first-response time for inquiries is reported to be under one hour, although customer service hours are limited to Monday to Friday, 9 am to 5 pm ET.

Fig's Position in the Canadian Lending Landscape

Fig Financial Inc. operates under the robust regulatory framework of Fairstone Bank's Schedule I charter, ensuring adherence to strict federal and provincial regulations. This includes oversight by the Office of the Superintendent of Financial Institutions (OSFI) and provincial regulators, as well as compliance with the federal Consumer Protection Act, provincial consumer protection acts (e.g., Ontario's CPA), PIPEDA for data privacy, and AML/KYC regulations.

Market Share and Competition:

Despite being a relatively new entrant, Fig has quickly established itself as one of the top three digital personal lenders in Canada by funded volume, having served over 9,000 customers and funded CAD 135 million to date. Its focus on prime borrowers with a fully digital model differentiates it from competitors. Key competitors in the Canadian market include:

• Borrowell: Primarily a credit marketplace and referral model.
• Spring Financial: Offers personal loans up to CAD 35,000, with rates starting from 9.99%.
• Traditional Banks: Major financial institutions like RBC, TD, and Scotiabank also offer personal loans, often with varying application processes and eligibility criteria.

Fig's competitive edge lies in its streamlined digital process, rapid decisions, and competitive rates for its target demographic, offering an alternative to the often more cumbersome processes of traditional banks.

Customer Experience and Feedback:

While Fig does not have a dedicated app store rating, its service has garnered positive feedback elsewhere. On Trustpilot, Fig holds an average rating of 4.8 out of 5 based on over 120 reviews, indicating high customer satisfaction. Common complaints tend to revolve around occasional funding delays beyond the stated two days and the limited customer service hours. Success stories often highlight significant interest savings for debt consolidation and quick funding for home improvement projects.

Growth and Future Plans:

Fig is actively planning to expand its product suite in 2026 to include secured loan offerings and lines of credit. The company is also focused on expanding its embedded lending partnerships across retail and fintech ecosystems, building on existing alliances with partners like Borrowell, The Brick, and Perkopolis.

Practical Advice for Canadian Borrowers Considering Fig

For Canadians evaluating Fig Financial Inc. for their lending needs, here is some practical advice to ensure an informed decision:

• Assess Your Needs: Clearly define why you need a loan and how much. Fig's loans are unsecured, suitable for various purposes, but ensure the loan amount and terms align with your financial objectives.
• Understand the APR: While Fig offers competitive rates from 8.99%, your specific APR will depend on your credit profile. Always compare the full Annual Percentage Rate, not just the interest rate, across different lenders to understand the total cost of borrowing.
• Check Your Credit Score: Fig targets prime and near-prime borrowers (typically 680+ credit score). Knowing your score beforehand can give you an indication of your eligibility and potential rate.
• Review Repayment Schedules: Take advantage of Fig's flexible repayment options (weekly, bi-weekly, bi-monthly, monthly) to choose a schedule that comfortably fits your income cycle and budget. Missing payments can lead to additional fees (approx. CAD 50) and negative impacts on your credit score.
• Consider Customer Service Availability: While Fig offers digital support, their customer service hours are limited to weekdays, 9 am to 5 pm ET. If you anticipate needing frequent or immediate support outside these hours, factor this into your decision.
• Utilize the No Early Repayment Penalty: Fig's policy of no early repayment penalties is a significant advantage. If your financial situation improves, you can pay off your loan sooner without incurring extra costs, potentially saving on total interest paid.

By carefully considering these points, Canadian borrowers can effectively determine if Fig Financial Inc. offers a suitable and beneficial lending solution for their personal financial circumstances.