New start-up aims to rip up the renting market rule book via Open Banking
Fronted, a new fintech start-up, will launch in 2020, with founders from Monzo, Bud and Apple.
Fronted will, after an initial phase, expand to offer services “that begins when a customer thinks about moving up until they drop off their keys”.
The start-up which will be headed up by fintech trio, Simon Vans-Colina, previously Monzo, Jamie Campbell, formerly of Bud and Anthony Mann, previously with Apple.
The service will officially commence early 2020 by paying people’s rental deposits. Qualification will come for customers by linking their bank account to Fronted using Open Banking and the newly formed firm will then send deposits directly to estate agents. Innovative solutions such as this, they say, enables them to them lend money at lower rates.
“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,” said Jamie Campbell, CEO of Fronted.
“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.”
“Renting sucks. “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.”