NCFA | Samuel He, Market Research Analyst Intern | July 3, 2020
Today, millions live paycheck to paycheck, struggling to get by financially. This lack of resources and a poor credit score makes getting a loan difficult. And the options that are available, make the problem worse with high rates and aggressive rules.
Traditional payday loans use aggressive deadlines and lump sum payments that often results in the customer spiraling into a debt trap.
The challenge for the customer is accessibility to resources and the opportunity to improve their credit capacity for future, cheaper loans.
Founded by Samir Issa, MoneyMates is an alternative lender that prioritizes the welfare of its customers by offering expert guidance not just on getting the loan, but how to improve their credit situation.
See: Shopify expands capital lending program to help Canadian merchants weather COVID-19
They do this by offering customers an extended repayment period of up to two months rather than the typical two weeks. In the event of a missed payment, MoneyMates will work with the customer on a solution to avoid additional fees and penalties.
MoneyMates has also added a unique savings feature to help borrowers accrue savings. Customers are given the option to choose a savings amount when borrowing, which is set aside and deposited into the account along with any bonuses once the loan has been paid off. The approach helps borrowers understand both what they are borrowing and what savings can be accrued to help them avoid future emergency loans.
The objective is to provide vulnerable borrowers with better financial health, expanding access to financial services and a sense of empowerment.
Interested in seeing MoneyMates pitch at FFCON20 DIGITAL’s Fintech Draft Competition?
Inspired by sports league drafts, the inaugural FFCON20 annual Fintech Draft is designed to identify and feature emerging and high growth fintech startups and scaleups. Qualifying Fintech Draft participants will be profiled online and reviewed by expert fintech scouts, and will compete in one of two (2) Fintech Draft competitions. Draft finalists compete at FFCON20 DIGITAL: RISE between Jul 9 – Aug 27, 2020 for exposure and prizes including promotion to investors, media, and partners and a 1 year industry partnership with NCFA.
Be sure to give them a vote and show your support! Check out their profile and competition here: http://2021.fintechandfunding.com/shortlisted-draft-companies/