Fronted, a new startup based in London designed to make life easier for tenants, is breaking cover today.
Founded by Jamie Campbell, Simon Vans-Colina and Anthony Mann, former employees at Bud, Monzo Apple and Apple will be launching a fintech product early this year to help lenders finance their rental deposits.
The plan will be included in the "Sandbox" program launched by the UK Financial Services Authority (FCA) to begin lending cash, which can only be used for a rental deposit.
It is believed that Fronted can lend itself cheaper than existing options such as credit cards through the use of open banking and other financial technologies and the provision of a credit product to directly fund deposits. Payday lenders and overdrafts or insurance programs with lower risk membership programs.
"Renting sucks ̵
In a late last week call with Campbell and CTO Vans-Colina, the couple said that renters applying to use the Fronted Service are being asked to connect their bank through Open Banking, their current transaction data notify and provide details of the property you wish to rent. Once Fronted has completed the required checks and agreed to provide a loan, Startup will send the money directly to the real estate agent for inclusion in the UK Deposit Guarantee Scheme. This means that the loan never touches the renter's hands (or purse). ,
"Customers have to pay us back a debit on a set schedule, or they can pay off anything if they have the money. [and] We do not charge any fees," Campbell says. There is also a planned vacation mode where customers can temporarily cut their monthly payments to avoid financial difficulties.
"Ultimately, this first product is very practical and we believe that people will choose it. This manageable alternative to a normal deposit," adds Campbell. "There are customers of ours who are in 'hidden households' who are unable to move because of the up-front charges. It can sometimes take a long time for deposits [also] to be returned by the systems (which the government has recently investigated). Fronted wants to serve people who would otherwise be "exposed by deposits" twice. We hope that this first product will increase social mobility by providing liquidity when people need it. "
Fronted will initially generate revenue through interest. Subsequently, the company plans to expand its fintech product offering with additional advance services "to offset the hassle of hiring."
"We also intend to introduce a service for utilities and the Internet, which is available at all times. "Says the Fronted CEO.