Consumer Loan Provider LendUp Has Given Out More Than $2 Billion In Loans
31 Jan 2020
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- This marks an important milestone for the lender, which has been on a growth trajectory since opening doors to the public in 2012.
- LendUp is offering financial education and affordable loans to its customers in an effort to increase the financial inclusivity of the American middle class.
More than $2 billion has been given out to customers of LendUp
in the form of consumer loans, according to the company’s recently reported figures. The company operates a digital lending platform with the aim of making consumer finance more accessible to middle-class Americans. The financial service provider LendUp started operations back in 2012, and so far has signed over 6.5 million loans. The average amount of a loan that is given out by LendUp is $300, offering short-term financial relief to its customers. According to the company’s CEO, Anu Shultes, the lender has achieved a new milestone with its lending services and is on a sustainable growth trajectory. LendUp is part of digital lending companies that are disrupting the retail consumer loans industry. One of the key distinctive features of LendUp’s services is a focus on the financial education of its customers, something that retail financial service providers have inadequately provided over the years. The company focuses on Americans that are usually not accepted by traditional lending firms. It combines its financial education services with credit product offerings, enabling people to make an informed decision about their borrowing needs. This has the potential to prevent many customers from entering expensive credit agreements, such as payday loans, to meet everyday expenses. According to Shultes, LendUp customers have cumulatively saved millions of dollars by choosing its services, and also improved their credit scores. Also, customers of the company have taken over 2 million courses that are offered through the lender’s platform for financial education. The company offers multiple credit products, including credit cards. Last year, the lender created a new firm, called Mission Lane, to focus entirely on its credit card offerings while the main firm deals in other credit products. This year also marks another milestone for Shultes herself, as she has completed one year as CEO with LendUp. Shultes has a diverse experience in the consumer finance industry, having worked at National City Bank and AccountNow, to name a couple, in the past. And investors have expressed confidence in Shultes’ abilities to deliver even more success for LendUp. According to Don Butler, who is the Managing Director of Thomvest Ventures
and also an investor of LendUp, Shultes’ performance indicates a promising future for LendUp, considering her vast experience in handling large credit portfolios and her unique focus on financial inclusivity. In 2020, LendUp plans to offer new finance programs geared towards improving the financial inclusivity of the middle class in America. This could further shake up the consumer finance industry, to the benefit of the consumers. A major customer segment for LendUp is women, and this group would remain a core focus area for the company. Women in America are more financially vulnerable compared to men, and also often excluded by financial service providers.