Sounds like a cool idea best of luck with everything, really like the idea of open banking as you get a clearer and more accurate view of a potential customer / customer much smoother process
Eventually we want to turn rent into a subscription-like service where we act as your Guarantor, help you setup your bills and broadband (and earn commission), and provide a fixed-fee checkout so you can drop the keys and go when you move out and leave scrubbing the oven to us .
We love that both the LIBDEMs and the CONS recognise the rent deposit issue in their manifesto, and are honestly really excited by the prospect of running a service that helps who ever wins deliver this manifesto promise.
Seems like a really interesting proposition. After a few years of house sharing, I moved into an unfurnished flat. This was pre-tenancy fees ban, so the deposit was around £1000. I couldn’t afford that alongside all the furniture I had to buy, so opted for the £180 “nil deposit” fee. This means I didn’t need to pay a deposit, but equally would have to pay for any deposit deductions once I’d moved out (into somewhere more expensive!).
In hindsight I should’ve looked around for a loan or used a lower interest credit card as I effectively paid 18% interest. Anything less than that and Fronted looks a great idea.
I just moved and went though something like this with homelet. And despite checking the box to say don’t bother me they still did trying to sell insurance and energy. Good idea, hopefully you can provide a competing offer (homelet were no cost to me)
Jumping in to help answer too
Great to see different stuff in fintech.
So what do you look for when you get granted full access to someone’s bank history? I’m curious because you would get a terrible understanding of my creditworthiness by looking at one of my bank account’s transactions.
Hey, We look holistically at what you can afford to borrow and the financial commitments you currently have. We also use open banking to get information like your name. Part of our hypothesis is because deposits are secured in schemes in the UK, A Fronted deposit isn’t the same as an unsecured loan. Also, because this relates to housing (roofs over heads), we want to make the loans as accessible as possible - whilst remaining responsible.
We think that a traditional score-based decision can penalise people unfairly and can, in some cases, be less informative than using open banking. @simon has a nice phrase: “traditional underwriting is like driving a car only looking in the rear-view mirror”. - I think he got that from someone at Monzo…?
Other benefits include not leaving a mark on people’s credit files which can be a blocker for some people.
Good luck guys, definitely a problem that needs solutions and open banking is an interesting route to take!
Will you be considering crowdfunding?
It was @paul
I like the idea of this,
I once did some work for an estate agent and tenants would moan about having deposits tied up.
Maybe look at an incentive program for the estate agents and maybe even for each personal member of staff for referrals.
Was there a reason for the .xyz domain out of interest?
also your forum bio is monzo
What happens if you don’t get accepted onto the sandbox scheme?
It’s a pretty cool new domain and not every english word has been taken already. Google’s parent company is https://abc.xyz and i really like a couple of companies that were already on .xyz including
yobota.xyz and starship.xyz
(we have a contingency plan…)
We have a plan B, a plan C and a plan D. These routes aren’t as perfect as the sandbox route (which isn’t entirely perfect because of the user caps) and vary between speed to market and cost.
Excellent idea. Just need to dismantle the letting agents who charge stupid fees for everything.
Why is it called Fronted? Front money as in lend? “I need a fiver for the bus can you front me the money and I’ll pay you back”
I thought fronted was slang to describe when someone becomes hostile after being triggered. Confronted. #downwiththekids
Double Fronted ?
There has been some good movement on this kind of practice in the UK. The Tenant Fees Act introduced this summer has some great consumer protections.
You were right with the first guess. Plus, the ‘double fronted’ secondary meaning is a nice bonus.
See also: ‘in front’ etc. What do you think, d’you like it?
I should also mention - we are looking for people who want to user test the product in its earliest form… if you fancy volunteering some of your time to help us out, please let me know We’d really appreciate it.
I would love to/would be happy to help!