Grouplend

Grouplend

March 16, 2015 10:00 ET

Grouplend Cuts Interest Rates as Application Volume Soars

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 16, 2015) - Grouplend, Canada's first marketplace lender for consumers, is further honouring its commitment to giving Canadians a better way to borrow by lowering interest rates for creditworthy borrowers by up to 4%, resulting in an average savings of more than $1,100 on most three-year loans. Having recently surpassed the $30 million mark in loan applications, the company has been able to refine its proprietary credit algorithms to reduce costs, and is passing those savings on to customers.

"With unprecedented demand for our fast, convenient and cost-effective borrowing platform, we're excited to announce that we're making our rates much more precise, much more personalized and much more affordable for Canadians," said Kevin Sandhu, Grouplend's CEO.

The recipe for the change boils down to one crucial ingredient: data. The proprietary algorithms at the core of Grouplend's product get smarter as more data is fed into them. With over $30 million in applications, the company has been able to sharpen its knives, cutting rates in the process, in order to give Canadians an even better way to borrow.

Grouplend employs modern technology to analyze data at a faster pace than traditional brick and mortar institutions, providing a much more affordable and convenient banking experience. Using their computers, tablets or mobile devices to log on to Grouplend.ca, Canadians can apply in minutes and receive a personalized quote in seconds for loans up to $30,000, with the entire application and approval process often taking less than a day. The company's business model not only eliminates costly overhead like bank branches and legacy systems, but it also optimizes interest rates and tailors them specifically to each individual borrower.

"This announcement is an affirmation of Grouplend's value proposition and business model," said Sandhu. "The more applications we receive, the more powerful our technology becomes. It gets better at determining optimal interest rates. It gets better at fraud detection. It learns how people are using the platform. We now have a highly refined sense of who our customers are and how to better service them, whether by evolving our existing products or introducing new ones."

The majority of Grouplend's customers have taken out loans to pay off credit card debt or other higher interest loans. Credit card users in Canada typically pay around 20% or more on their balances, compared to Grouplend's rates of 6.3%-17.5%. With non-mortgage debt in Canada hovering above $28,000 on average per person, the opportunity to consolidate debt at a materially lower rate has been welcomed with open arms by many Canadians.

"Our $30 million in applications so far has exceeded our expectations," added Sandhu. "Canadian consumers have raised their voices and asked for easier, faster and more affordable financial services, and we're proud to be giving it to them."

ABOUT GROUPLEND:

At Grouplend, our job is to give Canadians a better way to borrow. Headquartered in Vancouver, the company was launched in 2014 as a unique collaboration between financial industry veterans and technology entrepreneurs who share a passion for bringing the benefits of marketplace lending to Canadians. As Canada's first marketplace lending platform, we provide fast, easy and affordable loans by bringing together qualified borrowers with capital from individual lenders in a unique, innovative and efficient digital environment at Grouplend.ca. Our low-cost, online service model puts the power of technology to work for our customers, building a better borrowing experience that's fully personalized and arranging comprehensively assessed loans at better rates than traditional lenders can offer.

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