We're passionate about a UK where everyone who can afford a low-interest loan can access one.
But credit scoring is broken in the UK - you're either 'prime' (the top 26% of credit scores) or 'sub-prime' (the rest of us). Prime borrowers have access to the best products at the lowest rates - around 7.3%. The majority of us are forced into using short-term stop-gaps - Credit Cards, Overdrafts, Klarna etc - at rates of 35.3% and worse.
Research from PwC and Experian found there are at least 12 million 'subprime' borrowers - just as reliable as prime borrowers - who are locked out from the best products because of inaccurate information, minor blemishes in the last 6 years or who are simply completely invisible to the credit reference agencies.
That's a £24bn market that's currently getting ripped-off with high-interest loans.
Traditional lenders can't service these borrowers - because traditional credit scoring can't detect them.
That's why we built Plend - the UK's first Social Lending Marketplace, that allows lenders to be someone's lending hero at affordable rates of 10-25%.
Our bespoke credit scoring engine analyses open-banking data to see what borrowers can really afford right now - not punishing them for their past mistakes. We analyse 1 - 2 years of transaction data to directly weight our lower rates for each loan term - with a scorecard specifically designed for the post-Covid economy.
Vetted borrowers upload their images and tell their story to crowdfund their loans on our marketplace. Plend matches lenders who want to make a difference directly to borrowers looking to tell their story, earning its revenue from transaction flows running through the marketplace.
Our streamlined social lending model doesn't use a loanbook, and we pass on the operational savings to our lenders for market-beating returns of 11.5% (avr.) - interest and capital, each month.
No other platform in the UK is offering rates this good to lenders while allowing them to have a genuine positive impact on someone looking for an affordable loan. Borrowers get to tell their own story, in their own words - and no longer have to rely on Credit Cards, Overdrafts and buy now, pay later credit to put their finances in a better place.
Social lending marketplaces with open-banking credit scoring have seen massive success overseas - notably with SoLo loans in the US. Plend wants to be the first to offer it in the UK. more