Attack on banks: Marketplace brings together borrowers and investors
Lendico proves successful as a digital alternative to banks, providing cheap loans and attractive returns.
02 DECEMBER 2013, BERLIN
SummaryLendico is a win-win situation: Without cashier’s desks and with innovative technology, Lendico undercuts the cost structures of banks and continues to bring these savings to the borrowers and investors.
From today, a Berlin-based startup makes peer to peer lending possible. The marketplace offers cheap loans to borrowers and attractive returns to investors. People with money invest in projects of people seeking financial help. Hence both benefit: the borrowers from low rates and the investors from attractive returns. Lendico is a win-win situation: Without a cashier’s desk and with innovative technology, Lendico undercuts the cost structure of banks and these cost savings are passed onto borrowers and investors.
"Lendico was developed from the outset as the digital alternative to banks," says Co-Founder and CEO Dr. Dominik Steinkühler. "At Lendico, we are permanently engaging the position of banks. Our marketplace provides a new way to acquire credit and a new asset class".
In the assessment of loan applications, the company relies on an algorithm which can evaluate real-time credit offers. For Lendico, cheap loans and attractive returns do not contradict with one another: "We have established high quality standards in regards to the selection of borrowers because we always keep the interest of our investors in mind. Due to cost advantages, Lendico can offer favorable interest rates and provides smaller loan amounts, which the banks are not able to do ", states Dominik Steinkühler.
The volume of outstanding consumer loans and overdrafts in Germany currently stands at 200 billion euros. Therefore, credit costs have a tremendous importance for consumers. "One percent less results to two billion euros more in the pockets of consumers", says Dominik Steinkühler. The transformative power of the model is currently being experienced in the United States. In October 2013, the two main players in the US have arranged around $275 million dollars in loans- a growth of 174% for the same period last year.
Lendico is planning rapid international expansion and plans to launch within several new countries in the up and coming months. The team of 50 employees from renowned companies and banking institutions, have been building up Rocket Internet’s new main project, which is continuing to grow. Dominik Steinkühler says: "If you can employ banks directors for a startup, then you know: The model must be good".
How Lendico Works
Lendico.de provides borrowers with a place to freely showcase their projects. Lendico evaluates their creditworthiness and provides cheap rates of interest. Investors can find credit projects and invest in them online from €25. When the investor’s projects become fully financed, the investor then receives a payment. Investors will receive interest and principal payments from the first month paid into their account. Through a broad diversification across many credit projects, higher returns compared to similar safe investments may be earned.
Lendico is a marketplace for loans from person to person. Without bank branches or a cashier's desk, Lendico’s investors and borrowers are both involved in saving costs. Both sides benefit from attractive terms.
Lendico allows investors to finance people and individual projects, and provides borrowers with the chance to fulfill their desires with the necessary funding. Simply, the marketplace helps to fulfill the needs of both sides. Borrowers do not want to spend their hard well-earned cash on excessive lending rates. Investors want high returns on their savings. Both groups meet together at Lendico.
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LUnternehmensfinanzierungen. Schnell. Einfach. Günstig.
Lendico wurde 2013 in Berlin gegründet. Unser Ziel: Mittelständischen Unternehmen ermöglichen, ihr volles Potential zu realisieren. Mit schnellen, einfachen und flexiblen Firmenfinanzierungen. Unsere Motivation: Der Erfolg unserer Kunden.
Das Team hinter Lendico steht für ausgefeilte Technologie, ein tiefgreifendes Finanzverständnis, schlanke Prozesse, jahrelang angewandte Expertise und nicht zuletzt die Courage Neues zu wagen. Unsere Finanzexperten stehen als persönliche Ansprechpartner für alle Finanzierungsfragen zur Verfügung.
ING & Lendico
In den vergangenen 50 Jahren hat die ING in Deutschland bewiesen, dass sie anders ist. Und das beweisen wir auch – wenn auch noch nicht so lange. Deswegen sind wir überzeugt, dass sich die Unternehmensstrategie der ING in Deutschland und das digitale, sehr effiziente Geschäftsmodell von Lendico sehr gut ergänzen und wir zusammen stärker wachsen können.