What Happened to Cash on Go’s Uploan and Kreditech’s Kredito24?
With just a few months remaining of 2015, it doesn’t appear likely that Kredito24 or Uploan will be rolling out their new loan products. As has been the case for some time now, their websites remain live with the same email capture forms attached. If you would like to stay in the loop then you can subscribe at www.kredito24.co.uk or www.uploan.co.uk. So, why all the hype with these new loan companies? Kreditech aims to become “The Amazon of Consumer Finance” and they may well go on to become the first company to offer global payday loans. Then we have Cash on Go who are the team behind Peachy who could be considered as the new Wonga.
“Global Payday Loans” certainly sounds ambitious. At this time, the Ferratum Group (Local) serves 23 countries (mostly in Europe) and their goal is expand to operate in more than 50 locations. The trouble they and most other international groups face (other than acquiring licences) is the roadblock of credit bureau data access, particularly seen in many underdeveloped countries. Kreditech on the other hand is developing technology that can function without the need to involve credit reference agencies. Their algorithm scores 10,000 dynamic data points as they sift through online footprints for fraud detection, identification, scoring etc. Info is pulled from any given customer’s online shopping habits, their social media accounts and scoring even extends to grammar.
The concept of using social connections has been worked elsewhere through such companies as Lenddo and even Wonga has been known to study Facebook data. Kreditech will be arriving in the UK through the Kredito24 brand. Across the globe they do sometimes trade under other names such as K24 and Zaimo. Sebastian Diemer’s Hamburg-headed web firm is well funded and already has a workforce surpassing 120. They arrived on the scene back in August 2012. They initially launched in Poland and followed in Australia, Czech Republic, Mexico, Russia and Spain. On a past check they were rolling out products in Brazil, Dominican Republic, Peru, Philippines, Slovakia and of course here in the UK.
In existing locations served, they have been gathering notable traction and have faced such familiar faces as Ferratum, Vivus and Wonga. Similar to those, short term contracts are offered that see the initial benefit of instant payouts. In select Euro countries they have also been rolling out 0% loans. This is very common in such payday loan hotspots as Poland whereby several companies tempt customers in with 0% new customer deals and then the profit is earned on extensions and re-loans. Based on the points raised today, you can see why the Kredito24 UK launch has been eagerly anticipated. Unfortunately, their short term product is now less viable due to 2015’s daily price capping.
Uploan is Cash on Go’s second web project. We initially spotted that this trading name had been added to their credit licence and we then followed up to find www.uploan.co.uk that headed a brand new instalment loan. Peachy started out as a short term lending product, but it too sits in the instalment space with stretched out terms up to 12 months. Peachy has always been identifiable through great flexibility and vibrant branding. They emerged to take page 1 rankings for major keyword terms in Google notably including “Payday Loans”. TV ad campaigning followed and their social media following rocketed, so much so that they went on to become Facebook’s 4th most followed subprime lender.
They only started out in 2011 and so you can see why Wonga comparisons are often made. Yet again however, industry capping has caused damage and Peachy has been fully tested. The FCA’s daily capping has pushed many lenders into this overcrowded niche that is full of big name players such as Lending Stream, PaydayUK, Pounds to Pocket, Satsuma and Sunny. All of these big brands are seen on TV and so no one is now commanding high market share. You can perhaps understand why Uploan would have been delayed, with full focus being directed at getting the very best out of Peachy. Hopefully, we’ll see Kredito24 and Uploan in early 2016. Maybe we never will.