Lendrise Marketplace, Inc. is introducing LendRise®, the first cross- border marketplace lending platform. Based on our forecasts, we will provide consumer credit in the European Union (EU) at rates that will allow US institutional investors to achieve returns more than 3% higher than US P2P networks. Loans are repaid in level periodic payments and will be securitized on a one-to-one basis, allowing investors to diversify across ratings grades and countries, and eventually to trade the notes through our platform.
Lendrise has already developed ScoreRise®, the mobile app with an immediate goal to educate consumers about the existence of a credit score, how to manage it, and its effects on their access to credit products. It also allows us to connect and communicate with a large pool of potential borrowers, to whom we can later reach out with very specific lending product offerings.
In the very diverse European market, LendRise® can become the only common financial platform across Europe. In addition, as data about consumers will be collected across different countries, LendRise® has the opportunity to become a standardized international source of credit data, which is currently nonexistent.
Lendrise has already developed a mobile app called ScoreRise®. The app allows users to monitor their credit through periodic requests for their credit score and reports, similar to Credit Karma. ScoreRise® will be launched in each country three months before LendRise® enters the market. Although it is a separate product, ScoreRise® will supplement our digital and social marketing for LendRise® and allow us to connect and communicate with a large pool of potential borrowers, to build awareness of actively managing one’s credit score, and to accumulate data that will be added to applicant credit data in the LendRise® loan evaluation engine. The app also represents the opportunity to generate additional revenues, e.g., for frequent credit checks or advertising.