A new peer-to-peer lending platform is set to launch in mid-2021, with target investor returns of between 10 and 25 per cent.
Plend will offer unsecured consumer loans to borrowers, with loan approvals based on future creditworthiness rather than past history.
Founded by James Pursaill and Robert Pasco, Plend will use White Label Crowdfunding technology. White Label Crowdfunding’s sister company Rebuildingsociety will provide the regulatory permissions for Plend to launch.
According to a note on its website, Plend aims to offer “credit based on the future, as opposed to the past”.
It will specialise in personal unsecured credit using open banking data to predict the affordability of a potential borrower over the lifetime of the loan.
“We live in an unprecedented age of low and even negative interest rates – however, only the top 26 per cent of credit scores in the UK come even close to benefiting,” read a message on Plend’s website.
“The majority of personal lending decisions made in the UK are defined by history and the ability to prove ‘good behaviour’ – but who defines what ‘good behaviour’ actually is and what happens when you have no recorded history at all?
“In the rush for ‘quick decision making’ and ‘instant loans’ we have lost sight of what lending should be – an opportunity to invest in someone so they can achieve their goals.”
Pasco told Fintech Direct that the platform aims to originate £250m over five years.