10 December 2016
Visit aciworldwide.com

Social lending site Yes-Secure preps for UK launch

21 May 2010  |  8834 views  |  0 cash

UK-based person-to-person lending pioneer Zopa is set to get a first whiff of competition on its home turf with the launch next month of a new online lending facility Yes-Secure.

YES-secure says it will outpace Zopa by incorporating social networking into the process, allowing lenders and borrowers to forge relationships with each other in a similar way as Facebook and LinkedIn. Members can invite friends and family members to join their list of 'network connections' on the site where they can then lend securely to each other and interact via a chat facility and message forum.

YES-secure.com founder, Dr Chandra Patni says: "By adding the social element into borrowing and lending we are providing a network which is open and enables people to actually get to know who they are lending to, or borrowing from. It may be the case that you want to lend to a friend or family member, for example a student who needs a loan. By using the site you can offer them a better rate than the banks and you can formalise the deal as a personal contract between friends."

YES-secure.com will enable lenders to lend as little as £10 to £25,000, with the maximum lending to one person being £500 to reduce the risk of borrower defaults. However, if the borrower is on the lender's list of network connections, the lender can lend higher amounts. The company says it expects rates will be typically between 7% and 15%..

Consumers signing up to the site will be credit checked using CallCredit and will also be given a reliability rating so that lenders are aware of the individual borrower's creditworthiness. Borrowing from practices used to rate sellers on eBay, the larger a user's network, the higher the individual will score on a Yes-Secure 1-5 star reliability index.

The site will be fee-free for the first three months of live operation, after which borrowers will pay £80 per loan arrangement and lenders charged 0.9% of the amount leant. Both fees will be included in the loan APR.

Fees at Zopa are currently £124.50 for borrowers and 1% for lenders.

Zopa, which currently claims some 400,000 members, welcomed the competition as "a good sign that we had proven the concept to work".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Prosper closes in on series d funding

Prosper closes in on series d funding

01 April 2010  |  6797 views  |  0 comments
Prosper calls on Americans to share debt stories

Prosper calls on Americans to share debt stories

05 March 2010  |  5236 views  |  0 comments
P2P lender CommunityLend launches in Ontario

P2P lender CommunityLend launches in Ontario

12 January 2010  |  6335 views  |  1 comments
Prosper moves into consumer financing with Zero Motorcycles

Prosper moves into consumer financing with Zero Motorcycles

05 November 2009  |  7610 views  |  0 comments
P2P micro-lending site Kiva opens up to US borrowers

P2P micro-lending site Kiva opens up to US borrowers

10 June 2009  |  5098 views  |  0 comments
Lending Club raises $12m funding

Lending Club raises $12m funding

19 March 2009  |  5793 views  |  0 comments
Zopa quits US

Zopa quits US

10 October 2008  |  9629 views  |  0 comments
P2P lender Zopa reports soaring uptake as credit crunch bites

P2P lender Zopa reports soaring uptake as credit crunch bites

09 October 2008  |  12718 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit aciworldwide.comFind out more

Top topics

Most viewed Most shared
China tops world fintech rankingsChina tops world fintech rankings
8743 views comments | 39 tweets | 32 linkedin
EBA bends under weight of PSD2 mandatesEBA bends under weight of PSD2 mandates
8322 views comments | 37 tweets | 48 linkedin
Guesswork alone can crack Visa card security - Newcastle UniversityGuesswork alone can crack Visa card securi...
8074 views 12 comments | 15 tweets | 27 linkedin
PSD2 will transform the payments landscapePSD2 will transform the payments landscape
7290 views comments | 24 tweets | 13 linkedin
Fed Governor sounds warning on alternative credit scoring dataFed Governor sounds warning on alternative...
6918 views comments | 20 tweets | 24 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job