LENDING Works has unveiled a new partnership with money management app Revolut, which the firms claim will provide consumers with instant credit at half the cost of UK banks.
The UK’s third largest peer-to-peer consumer lender had told Peer-to-Peer Finance News last week that it was finalising a partnership to boost its borrower network, although it could not disclose the details at the time.
The collaboration with the online personal finance specialist allows individuals to access P2P funding within three minutes, at no additional fees – in contrast with high-street lenders’ expensive and time-consuming credit application processes, the firms said on Tuesday.
The Revolut app processes data on customers’ monthly income, residential status and required funding amount through a credit decision model, and then returns pricing information on a range of available loans.
As soon as customers accept the terms on the app, they can use their contactless Revolut card to spend their credit anywhere in the world, at current exchange rates and with no transaction fees.
Lending Works said the move underpins and strengthens the more efficient service that banking challengers can offer consumers.
“We are delighted to be partnering with Revolut in this venture, which breaks new ground within personal finance,” said the firm’s chief executive Nick Harding (pictured).
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“We identify strongly with Revolut’s commitment to making financial services fairer and more efficient for consumers, and the fact that they have chosen our platform to deliver instant credit represents a gratifying seal of approval of the innovative technologies we use.”
Venture capital-backed Revolut was launched in July 2015 to boost transparency in the financial services industry. Customers can conduct a range of financial transactions on the platform, such as receiving salary payments, paying bills, transferring currencies and exchanging funds.
“The fact that anyone can now apply for credit from anywhere in the world in two minutes, get the money instantly and spend it with a Revolut card without fees in any currency is mind-blowing,” said Revolut’s chief executive Nikolay Storonsky.
“The same process to apply for a loan or credit card with my bank would take a week and cost me double.”