Given how the South lags behind the rest of the country in terms of average credit score and the cyclical nature of wealth accumulation, there is a deep need for products and services that lower barriers to credit and support individuals as they build or rehabilitate their credit histories in this part of the country.
Launched in December of 2011, LendUp aims to disrupt this cycle by providing a friendlier version of payday lending. Their current plan is to make loans of up to $250 for as long as 30 days to people with poor credit.
Launched in December of 2011, LendUp aims to disrupt this cycle by providing a friendlier version of payday lending. Their current plan is to make loans of up to $250 for as long as 30 days to people with poor credit.
In the video below, CEO Sasha Orloff explains how LendUp employs microfunding to reach a vision of broader economic involvement. As of this summer, they can deposit money into a bank account in less than 15 minutes.
There is tremendous potential for providing products such as this in the rural South. Internet access, smartphone usage, and banking rates would pose significant challenges to scaling, though.