Alex Benjamin,Lendful’s CEO and co-founder, commented:
“For years, Canadians have faced high fees and slow responses when seeking to borrow to help meet their needs. Canadians are some of the most trustworthy borrowers in the world, so why is it so difficult and expensive to get credit? And, at a time when people are transacting online more than ever, shouldn’t it be easier for responsible Canadians to get a loan?”
Benjamin has said that he aims to give Canadian borrowers more options and will offer rates that save borrowers on average 30% when refinancing as well as dramatically improving response times for borrowers.
He added:
“This will include on-line loan approval and money in the borrower’s bank account in as little as 24 hours from the time of application.”
Lendful has ensured it has a simple online application process. This is helped by their innovative credit algorithm, that looks at a wide range of factors when considering a potential borrower from employment to credit card histories to social media profiles.
Mike Benna a partner of Stanley Park Ventures, one of two Vancouver-based investors backing Lendful, explained:
“We think Lendful is great for Canadians. Most banks have complex, time-consuming approval processes and the approach hasn’t changed in decades. Stanley Park likes the idea that Lendful can instantly make meaningful and insightful credit decisions so that customers don’t have to wait days or weeks for a response.”
Benjamin has over 12 year investment banking experience, much of it with Macquarie Bank.
He continued:
“Canadians have been waiting for this for too long. It’s time for an on-demand mobile lending solution.”
Lendful will offer loans of up to $35,000, a range that is often used for credit card debt consolidation, home renovations and car buying. To be considered customers must have a credit score of at least 690, be an employed permanent resident of Canada and be at least 19 years old with three or more years of credit history. Lendful aims to start offering loans by mid-2015.
We have previously taken an in depth look at the Canadian marketplace lending space, as well as interviewing the founders of FundThrough,Grouplend and Borrowell. This revealed that the marketplace lending space in Canada is lagging behind that of the US and the UK. This is partly due to the banking sector that has five big banks dominating the lending market. The marketplace lending space is Canada has huge potential and there is undoubtedly demand from borrowers. And so Lendful is well placed to take advantage of this nascent market.
