A Message from our Founder
Three years ago, in December 2014, I wrote about our new company, INSIKT, and its revolutionary idea to provide “Lending as a Service” to help “brands, not banks, be the lenders of tomorrow.” At the time, we raised $17 million in Series B financing to create a new model and technology for delivering affordable, credit-building loans to America’s working class.
We rejected the notion that these folks should be ignored and denied access to capital, as we’ve seen so often at mainstream financial institutions, just because they lack the “right” credit score or paycheck. Instead, we believe in the “moral collateral” of people who work multiple jobs day and night to make ends meet. Our mission is to help them establish good credit scores so they can buy a car, afford a home, and make better financial decisions.
Today, three years later, I am proud to say that we’ve turned our idea into a game-changing reality for thousands of working class families across America. Our white label platform, LENDIFY, operates behind more than 30 brand names ranging from supermarket chains to money transfer stores in over 620 locations. We power the entire loan process from A to Z: accepting applications online or in stores, providing tablets for signing loan documents, automating the underwriting, and funding the loans – with in-person or electronic disbursement. Since we made our first loan in Richmond, Calif., in late 2014, we’ve processed over 330,000 applications, made more than 125,000 loans, and expanded to Texas, Illinois and Arizona. Our typical applicant works multiple jobs, makes $28,000 per year, rents versus owns, has a 580 FICO score or no credit score at all, and has little-to-no debt. Our “powered by” model allows us to make small loans to these borrowers at much lower costs than the most savvy online lenders and at consistently lower losses, proving each borrower’s high “moral collateral.”
Most important, we’ve changed lives for the better. Our customers are not only establishing credit, but are seeing their credit scores improve with each on-time payment. We’ve also helped many get through tough times, from life’s daily hurdles to the fires in Santa Rosa and floods in Houston. In return, our customers have rewarded us with referrals to their friends and families, and give us high satisfaction scores – an average of 88 on the Net Promoter scale.
I am very proud of our team members, who have worked tirelessly to build America’s first Lending-as-a-Service platform, reaching hard-working families in their local communities or online through a trusted brand. But this is just the start. Our goal is to build a network of more than 5,000 partner stores and an online presence that touches tens of millions of people each day, delivering affordable financial products to underserved yet highly deserving families across the country.
To that end, I am very proud to announce that we have just raised another round of financing to fuel our growth – $50 million in Series D equity. WHOO!
Our accomplished new partner, Grupo Coppel of Mexico, serves millions of working class families in Latin America with loans, life insurance, pensions, and bank accounts. Coppel operates more than 1,450 department stores and offers its empowering financial products at 1,000 bank branches in Mexico. Together, we aim to extend our white label approach to millions in America and beyond.
Congrats again to our team, and thanks to all of those who have helped us reach this milestone.