Over 8 million individuals utilize credit to fund everyday home costs, and several of them battle to access reasonable, affordable credit. Community loan providers provide one substitute for profit-driven services that are financial but without the deep pouches to purchase things such as marketing or technology, they’ve remained beneath the radar. Chris Gorst, from Nesta Challenges, on what a brand new competition is motivating collaboration with fintech innovators to shape a kinder individual financing market.
Are community loan providers certainly one of the UK’s best-kept secrets?
With several credit unions and community banking institutions now providing cost savings and loans services and products, as well as present records and mortgages, could these be described as a viable option to mainstream, profit-driven economic solutions? The question is a timely one as payday lenders such as Wonga and QuickQuid collapse under the weight of customer complaints.
Some great benefits of community loan providers are wide ranging: they’re non-profit, rooted within their district, their savings and financing prices are competitive, in addition they offer a far more affordable credit option to people who might otherwise check out high-cost credit. (more…)