Lend enables the Swiss credit markets by providing fair loans for borrowers and good returns for investors. Loans are expensive for borrowers and lack transparency. Banks generally maximise profit by charging high interest rates (partly due to fixed charges) on their loans while the cost of borrowing money is very low. Therefore, borrowers with good reimbursement profiles are poorly served in the traditional loan system and the interest rate they paid is not representative of the risks taken by the banks.
Lend created a crowd-lending platform directly matching investors with borrowers. Overhead costs are substantially lower than those of a bank are and savings can be pass on to borrowers and investors; borrowers profit from low interest rates and investors earn significant returns. The platform uses Lend’s own proprietary software allowing making independent and automated risk scoring, set the right interest rate and ensure very low default rates.
CEO: Florian Kübler
Headquarters: Zurich, Switzerland
Initial investment date: June 2016