Add a P2P dimension to that, and you have Lenmo.
The new app is launching in the next few weeks in Apple’s app store, Bank Innovation has learned. Lenmo, founded less than a year ago, is a peer-to-peer app in which the lender can select a borrower, as well as set its own interest rate, “which will be higher than most alternative options,” Margaret Cipparone, a Lenmo spokesperson, told Bank Innovation. These individual lenders will facilitate small, unsecured loans ranging from as low as $50 to as high as $5,000, she said.
For borrowers, they can choose the various lenders available on the app and select the one they find most suitable. The goal behind this type of P2P lending service is to cater to the vast underserved market.
See how the app works here.
It is unclear how Lenmo will determine the financial profile of a borrower or lender, as no details on this were provided. Cipparone did, however, tell Bank Innovation that it was working with TransUnion as its “credit bureau partner and we also leverage our integration with them for ID verification as well as fraud prevention.”
Lenmo, which is a play of the words lending and Venmo — itself a contraction of “Vendor Mobile” — is also currently working with payments platform Dwolla for its ACH transfers, she said.
So far, Lenmo has raised $261,000 in seed funding.
The app is set to launch sometime between the last week of August and the first week of September.8 - Readers Like This Post