PR: How did you get into the property market?
TF: As a renter, I have rented in 12 countries, paid rental deposits, have gone through very painful screening processes, each time I rent.
In 2015, whilst working with KPMG in Amsterdam, frustrated with yet another rental application, I decided to deep dive into the property sector to understand how in a digital age, whilst I could rent a property for short-term with AirBnB in 191 countries and share a ride with a stranger, I could not rent for 12-36 months in Amsterdam, without a financial guarantee from KPMG Amsterdam.
In a nutshell, the rental market historically has not focused on the tenant as a customer - the customer historically been the ‘landlord’.
I left KPMG in 2016 to start Canopy with a simple mission - build a platform that can contribute towards building a fabric of trust across the rental value chain, whilst being singularly focused on developing/pulling best-in-class, renter-centric financial products which help a renter become financially resilient - and can help globe trotters like myself rent a property wherever I choose to move!
The property sector is now investing significant sums on re-defining their business models, creating best-in-class customer-centric experiences and recognising the tenant, in addition to the landlord, as a customer. At Canopy, we are grateful for having the opportunity to work alongside some of the leading names in the lettings agent and build-2-Rent (B2R) markets.
PR: Why did you set up Canopy?
TF: Over 11m people in the UK have less than £100 in savings. We have pledged to return £1,200 back to renters’ pockets, by eliminating rental deposits by 2025.
We aim to help create a society which promotes rental and financial inclusion - where our customers have a better relationship with money, are able to meet their financial goals and live a healthy financial life. 3% of our profits will be re-invested to alleviate homelessness.
PR: What does Canopy offer agents and landlords?
TF: Canopy’s ambition is to build a digital rental marketplace focused on the financial wellness of renters.
Canopy has also pledged to eliminate tenant screening costs by December 2021 for letting agents and landlords. Furthermore, Canopy also aims to work alongside letting agents to help grow revenues by offering innovative, ethical and affordable financial products and services to tenants.
Canopy’s core product, RentPassportTM, powered by Experian and Open Banking data, is a free referencing product, for all Letting Agents and Landlords.
Canopy’s deposit free insurance, an affordable alternative to cash deposits, offers Landlords 8 weeks protection as opposed to five weeks protection with cash deposits. The policy covers the landlords for all reasonable claim, as it would be with a cash deposit.
In addition, Canopy offers contents insurance, income protection and shortly energy switching services to tenants. Canopy also has partnered with a leading insurer to offer landlord cover. Many landlords, especially ‘accidental landlords’ or buy‐to‐let owners are not adequately insured to protect their biggest asset – rental property.
PR: How do you think Brexit will impact the property market in 2020?
TF: Markets reward clarity on regulatory and economic policies. Now that the businesses and investors have clarity on Brexit, we have witnessed in recent weeks, a renewed optimism return in the property market.
We are facing a new world in the lettings industry, with the proportion of households in the private rented sector (PRS) to rise to 22% by 2023. Forecasts by Frank Knight show that the total capital committed to professionally-managed private rented sector accommodation will also rise significantly to £75 billion by 2025.
This exponential growth is also bringing a significant shift in tenant demographics, with increasing numbers of 21-35-year-old professionals choosing to rent. This age group is also expected to show the largest growth in households in the private rented sector over the coming years, as millennials – aka ‘generation rent’ - continue to face difficulty in obtaining a mortgage to buy their first home. There are currently 15 million renters in the UK market and this number is growing every year.
The good news for landlords and agents is that there is a strong supply of people wanting to rent their properties. In light of these trends, agents and landlords need to be looking at tenants through a new lens - as ‘customers’ rather than ‘tenants’ and should be asking themselves, ‘how can we provide a better service’ and ‘what can be done to build trust amongst landlords and tenants to build a happy and stable relationship’?
PR: What do you love and hate about the property market?
TF: I love being part of an industry that is undergoing significant technological changes to reimagine the end-customer experience.
According to an article in the Evening Standard, more than half of London’s nurses could quit the capital over the cost of living. That’s the bit I do not like - that some key workers and young people who might be renters could be forced out of the capital.
Our mission at Canopy, therefore, is to leverage Open Banking, artificial technology and machine learning-based technologies, to help contribute towards building a society which can make a real difference to the financial lives of tenants.
We are working with some of the biggest names in the lettings agent market who have chosen to work with Canopy because it will allow their tenants to build a better financial future, simply by tracking rental payments.
PR: What are your tops tips for agents and landlords?
TF: Banks, insurers and the automotive and travel industries are some of the sectors where incumbents, large and small are working with start-ups to re-define the future and co-create customer experiences.
We have pledged to eliminate tenant referencing costs by December 2021. To do so, will require letting agents and landlords to embrace Open Banking based emerging technologies. Agents need to work with ‘best-in-class’ tech partners to build trust, not only for tenants, but also for landlords.
