We set down with Omri Dor- Co founder and COO at Obligo for a short interview.
How did you come up with the idea for this startup?
I just realized that in the rental transaction, there is no trusted third party. This is unlike most modern and tech enabled transactions. When you ride an Uber or take an Airbnb, there is someone there to provide trust. I began thinking, what would the advantages be to landlords and renters if there was a trusted third party in the mix. The result was Obligo.
Tell us about your venture - what problem are you solving?
We are solving the problem of establishing trust between landlords and renters, and we do it with financial technology. Until today, because of lackluster screening and collection technologies, landlords had to rely on security deposits to ensure renter quality and accountability. Today, with the advent of Open Banking and electronic payments, there is a better way.
What makes your solution better than others?
Landlords who wish to transition to a deposit-free model need to take care of three things: financial derisking, renter quality, and renter accountability. There a are multiple insurance solutions today who take care of financial derisking, but if you’re a larger landlord (100 units +) then you don’t really need that. You can just set some money aside and forecast your bad debt. Obligo takes care of those other two things: renter quality (through an AI analysis of Open Banking data) and renter accountability (through a robust collection system, based on payment preauthorization which the renter must provide)
What was your biggest stroke of luck since the launch of your startup?
Timing. We launched right as the regulatory and competitive trends were really forcing the industry to think about deposit-free operations.
Describe the main challenge you are facing today.
Growing the company, while maintaining the same level of excellence, talent and positive culture is super hard. We’re doing the best we can though!
What can we wish you for 2021?
The most important thing is everyone’s health. I wish COVID will be behind us and that I can come visit my parents in Israel.
One great tip that you have for other entrepreneurs.
Talk to, learn from, and especially try to help other entrepreneurs as often as possible. It is by far the most effective therapy you can treat yourself to.