Propel will underwrite and fund the loans through its AI-powered platform. Users will be able to apply for and manage the loans, which will use Propel’s Fora branding, through Koho’s app. (The Logic)

Talking point: Toronto-based Propel offers high-interest loans to customers who wouldn’t qualify through banks, using AI to assess their creditworthiness by crunching data from non-traditional sources. It mostly operates in the U.S. under the MoneyKey and CreditFresh brands, and expanded into Canada in 2022. The deal puts Propel’s Fora brand in front of Koho’s more than one million Canadian users. Propel went public in 2021 and has fared better than its peers that did the same that year, many of whom have since delisted as the economy soured. Its stock is up a whopping 240 per cent from last year. As I previously reported, fintech lending in Canada has boomed over the past year as banks have made it harder to qualify for loans, raising questions about whether the sector has sufficient oversight.