Mogo, a member of the leading international fintech company Eleving group, has been operating in Armenia for five years. During these years, Mogo adapted and successfully implemented the best practices, services, and products of Eleving group in Armenia. We have talked to Hakob Manukyan, Chief Executive Officer of Mogo, about the company’s 5-year activities.

- “Mogo” has been operating in Armenia for 5 years. What changes has the сompany brought to the financial sector?

- When universal credit organization Mogo appeared in the Armenian market in 2017, there were very few, or one might say, almost no financial institution that provided car loans or loans secured by car pledge. There was often skeptical attitude that such products were quite risky, which was because there was no such offer in the market, consequently, there was no experience and trust either. The offers were for primary market cars only and the secondary market was free. However, the credit market seemed quite prospective in terms of these types of products and services, and studies also revealed that there was a need for them. After Mogo Armenia launched these products, other companies also started to offer the same products and the market gradually began to develop: car loans and loans secured by car pledge became common products.

During these 5 years, “Mogo” has proved that there are many similar products in international markets, which can be effectively localized and introduced in Armenia as well. “Mogo” is a leading brand of “Eleving Group”, which is one of the biggest international fintech companies. “Mogo” operates in 13 countries across 3 continents. In Armenia, “Mogo” offers the top products and services of “Eleving Group”. The latter operates in a number of countries of the world, each of which has its own market features. Hence, as a member of Eleving Group, “Mogo” applies the international best practice in Armenia and presents fintech sector’s innovations, principles and methods.

- “Mogo” is known as a fast loan providing company. Thanks to what the сompany is able to provide fast loans and isn’t it risky?

- Mogo Armenia provides fast car loans thanks to the use of an advanced credit risk scoring system and modern technological solutions.

I am specialized in risk management and crediting and I have been in the financial sector for more than ten years, thus I know how the system works and what peculiarities it has. Consumers usually accept what is available in the market. There is a stereotype that lending implies long procedures in terms of collecting many documents and making decisions, which will take at least a few days. Whereas, all that can be done in a much more efficient and qualitative way thanks to automated systems and digital technologies, which is also observed with regard to the products offered by some banks and credit companies operating in the Armenian market.                          

The scoring system used by us implies precisely that automation. What is it? The system checks a person’s credit history, authenticity of documents, income and other materials in order to assess the risk scale and make a decision, and already having thousands of data and histories in the database it ensures much more accurate results.

Eventually, it turns out that it’s not that we do not deeply study the client's credit history, but on the contrary, by studying many histories, the system brings out the possible risks and makes the most effective decision.

Thus, the document circulation in the Company has been reduced to the minimum and by saving time and resources we are able to provide the desired result. Of course, after this process, our specialists apply an individual approach to each client. The employees of “Mogo” are experienced and informed specialists and by using innovative and effective methods in their work, they enhance the financial literacy of our clients, contribute to making effective and responsible financial decisions.  One of the keys to the success of “Mogo” is the devoted and united team with a consistent, caring and responsible approach to all customers.

- What products and services have been offered in Armenia taking into account the international practice?  

- At the beginning of this year, we introduced a new product, the Primero loan, which is envisaged for people who have a stable income, but due to the lack of a downpayment or other reasons, cannot use the car loan services offered by banks. In general, all our products serve Mogo’s mission to offer affordable car loans and loans secured by car pledge to those searching for a simple, fast and convenient financing option and to support personal financial well-being and success.

In the nearest future, we are planning to offer our customers new products which have been developed taking into account their requirements. Operating in Armenia, “Mogo” aims to study and introduce international best practices, innovative solutions and products of the field.

- When did you join the “Mogo” team? Would you tell us about your development path? Where it all began?

- When I joined “Mogo”, the team consisted of only a few members, today we are a team of about 70 different professionals. The company has continued to develop over the years, which once again proofs that the need and demand for its products had been and still remains today.

I am a financier by profession. I graduated from the Plekhanov Moscow University of Economics, received a PhD degree from Yerevan State University, and I am currently studying at the English York and French Strasbourg universities to receive an Executive MBA qualification. Before joining “Mogo” I had been working in the banking sector, and when “Mogo” was established in Armenia, I received an offer and gladly accepted it, because I found it interesting. By working here and dealing with international teams, I have gained vast experience and skills. Being a Board member of the Association of Credit Organizations, I personally follow the innovations, carry out studies to understand what we can offer to our compatriots.

“Eleving Group” regularly introduces innovations in the countries of its operations, which can be quite prospective and effectively applied in our country as well. “Eleving Group” regularly conducts market survey, and “Mogo” Armenia, as a group member, follows these innovations, pursuing to implement and develop them in Armenia as well.