Fronted, a UK startup that uses Open Banking technology to lend cash for rental deposits, has come out of hibernation after the pandemic upended its initial launch plans last year.
Established by a group of former Monzo, Bud and Apple staffers, Fronted offer users the chance to link their bank account to the startup's platform using Open Banking. After parsing the data to assign a credit score, the firm will then pay the upfront deposit directly to the estate agent and arrange repayment, charging 12.5% interest on a 12-month repayment plan.
The firm was set for launch in March last year, but the UK-wide lockdown put paid to its plans as the rental market entered the doldrums. The founders furloughed themselves and put the business to bed until the market started picking up again.
In the meantime, the firm has raised seed funding of £375,000 from Monzo backer Passion Capital and Truesight and has also received FCA approval for go-live.
The company says that it is already fielding about 1000 applications a month from beta users.