Canada’s financial technology sector is rapidly expanding, so traditional banking models will eventually need to co-exist with fintech. McKinsey Research projects the global fintech industry’s revenues to balloon to US$1.5 trillion by 2030. Furthermore, fintechs are projected to deliver 15% annual revenue growth compared to 6% for traditional banks.
A gigantic gains opportunity for investors is Propel Holdings (TSX: PRL), a high-growth stock. This $1.3 billion company operates in the consumer lending industry of North America and the UK. Its online lending platforms offer credit solutions to consumers in need of personal and credit-building loans.
Source: Getty Images
Best-in-class lending products
Propel’s lending products focus on underserved consumers that most traditional lenders reject. Management believes that the business has significant growth opportunities, is highly profitable, and scalable. The fintech receives around 20.7 million unique applications annually, or 61,000 per day.
The loan tickets are small, ranging from US$200 to US$8,000 per loan applicant. Consumers can improve their credit scores or ratings through some of Propel’s artificial intelligence (AI)-powered programs. Moreover, customers with good credit standings could graduate to lower rates and higher loan amounts. Loan processing is fast, as 90% of loan applications are auto-decisioned.
Propel extends Installment Loans (fixed-term, amortized loans with fixed repayment schedules) and Lines of Credit (consumers draw cash advances from open-ended credit lines and repay any amount up to the available credit). However, terms and conditions vary depending on the jurisdiction.
Profitable growth
Propel is true to its word that the business model creates sustainable and profitable growth. The average annual net income in the last three years is US$29.7 million compared to US$6.6 million in 2021. In the first half of 2025, total revenue and net income increased by 39% and 59% year-over-year to US$281.9 million and US$24.2 million, respectively. Its provision for credit losses (PCLs) increased 36% to US$129.9 million from a year ago.
The Canadian fintech has established long-term relationships with debt capital partners under attractive economic terms. These partnerships enable Propel to facilitate loans, grow its receivables, and further grow the business. Management plans to develop relationships with new debt or bank partners should the business require additional debt capital.
In Q2 2025, Propel and its bank partners were more stringent on new loan originations due to economic uncertainty. However, volume from returning and existing customers remained high.
Stock performance
The fintech stock has delivered enormous gains to investors. I wouldn’t be surprised if PRL becomes one of the TSX’s top-performing growth stocks in 2025. At $33.32 per share, the three-year overall return is 307.7%, representing a compound annual growth rate (CAGR) of 59.6%.
Had you invested $7,910 (1,000 shares) three years ago, your money would be worth $33,320 today. Because of the record financial results in Q2 2025, Propel announced a 9% dividend hike, marking the eighth consecutive dividend increase. The current dividend yield is 2.3%.
The best is yet to come
Consumer adoption of digital financial solutions in Canada is on the rise. For Clive Kinross, CEO of Propel Holdings, the best is yet to come. “We have the talent, capital, technology, and strategic alignment to become the global leader in underserved credit,” he added.
