Lenny Launches Lending App Aimed at Millennials
Lenny launched its new money lending app last week that is intended to provide credit to Millennials. The platform will also have peer-to-peer (P2P) payment capabilities.
To create an account, users download the app and then apply for an initial credit line from $100 to $10,000. When balances are repaid in full and on time, the loan has a 0% interest rate, which increases when payments are not made in full. Interest rates can be as low as 4%, with an average of 9.8%. When repayments are made on time, credit limits can increase by up to $1,000 each quarter.
Lenny uses an algorithm to determine an applicant’s credit worthiness and score. Once the applicant has been approved, customers can deposit the money into their bank account, or instantly pay their friends using the P2P function.
“Lenny is building a one-stop shop organization that serves the financial needs of a generation,” says CEO and co-founder Joe Bayen. “We help individuals improve their credit scores by informing major credit bureaus when payments are made on time. Your improved credit score can then be used to rent a house without needing a cosigner, help secure great credit cards, and more.”
Venmo is the current leader in P2P payments, but Lenny hopes to surpass it by supplying free credit scores to clients.
It differs from other rivals in that it is a mobile first company. The company is hoping to capitalize on the fact that 59% of U.S. Millennials access their bank accounts via mobile technology.
Lenny and Dwolla partnered in December to create this platform.