London-based fintech startup Fronted that aims to make life easy for renters, is preparing to launch in 2020. The founding team includes Jamie Campbell, Simon Vans-Colina, and Anthony Mann — former employees at Bud, Monzo, and Apple, respectively.
Notably, the company has designed a product to help renters finance their deposits. Right now, the founders is planning to get into the FCA’s (Financial Conduct Authority) ‘Sandbox’ program, which is managed by the UK’s financial regulator. Post that, the company can start lending cash that can only used for making rental deposits.
By using Open Banking and other financial technology the company develops a credit product that can used to deposit fund directly. With this move, Fronted can lend more cheaply than existing options, such as credit cards, pay-day lenders and overdrafts, or insurance-backed membership schemes. Moreover, the company also claimed that it can provide ending services at a lower risk as well.
In order to use the Fronted platform, user will be required to connect their banking service provider using Open Banking. Once it is approved after required checks the startup will send deposits directly to estate agents. They also claimed the product has been developed to be user-friendly as well.
Jamie Campbell, CEO of Fronted, said:
If you can’t pay the months rent upfront and the deposit then you can’t move for a new job, you’re stuck living with an ex or with your parents… these costs stop people moving places. We are lending this money to increase social mobility. No fees. No early repayment penalties and the option to reduce monthly payments with a ‘holiday mode’ feature.
He also added,
It’s expensive, stressful and, at times, makes you feel like a second class citizen. Now that homeownership is even more out of reach we need to rebalance the equation and give renters more control. The first thing we are fixing is the high upfront cost of renting which can cause so many social issues.
Main image: Fronted
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