Loan app for family and friends to launch
A consumer lending app that plans to launch later this year has changed its peer-to-peer lending strategy due to the “intense” regulatory environment.
Punk Money is now focusing on friends and family loans, where consumers can borrow money from someone they already know.
The investor sets the interest rate, although the borrower can charge a certain rate, and users can choose to report their data to credit bureaus to improve their credit score.
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Founder and chief executive Ewan Dickie said he originally planned to launch Punk Money as a P2P lending platform, but decided to change direction in the third quarter of last year due to the process of stringent regulatory approval.
“We saw that P2P regulation was incredibly intense and it would be difficult to make rapid progress in this area – the Financial Conduct Authority was very strict on new players, which meant a major barrier to entry”, a- he declared. News Peer2Peer Finance.
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“Loans between friends and family have less competition. It was better for us to focus on creating a product that we knew was going to help people. »
Dickie said Punk Money closed a £500,000 funding round at the end of 2021, and later this year is aiming to raise £3m and hit the market.
He also revealed that over 8,000 people have signed up to use the app so far.
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