The startup Fintech company named Revolut just launched a brand new credit feature for U.K users. Revolut is working with Lending Works to provide features to customers. Lending Works is a peer-to-peer lending company that matches individual lenders with borrowers. Customers can select how much money they want and the number of months they need to pay it back. After entering your monthly income and residential status, you will get a quote and you have the option to accept or decline. In addition, the borrowing APR rate is lower than credit card or a traditional loan.
Except for this plan, Revolut is planning to have travel insurance, investment products and also lending and borrowing in multiple countries. We can see that after Fintech has launched, financial institutions have very severe competitions from those Fintech startups. Those startups offer better deals in a more convenient way to customers. Therefore, the traditional banking institutions are facing very big challenges right now. However, banking institutions have higher reputations and people from older generations are tend to trust traditional banking than the new startups. Although Fintech startups provide better products, it still takes time for them to build great reputation.
Revolut users can now apply for credit in just a few minutes