Can tech help reinvent the community sector that is lending?

Can tech help reinvent the community sector that is lending?

Over 8 million individuals utilize credit to fund everyday home costs, and several of them find it difficult to access reasonable, affordable credit. Community loan providers provide one replacement for profit-driven services that are financial but without having the deep pouches to buy things such as advertising or technology, they will have remained underneath the radar. Chris Gorst, from Nesta Challenges, on what a unique competition is motivating collaboration with fintech innovators to contour a kinder personal financing market.

Are community loan providers certainly one of the UK’s best-kept secrets?

With several credit unions and community banks now providing cost savings and loans products, and also present reports and mortgages, could these be described as a viable option to mainstream, profit-driven financial solutions? As payday lenders such as for instance Wonga and QuickQuid collapse underneath the fat of consumer complaints, the real question is a timely one.

Some great benefits of community loan providers are wide ranging: they’re non-profit, rooted inside their district, their savings and lending prices are competitive, and so they provide a far more affordable credit replacement for people who might otherwise move to credit that is high-cost. Their place in the middle of these communities additionally enables them to comprehend and tailor their offer towards the social individuals who they provide. […]