Financial tech has attracted a lot of tech entrepreneurs because the future of business will be heavily dependent on fin-tech and the evolution of fin-tech industries. VCs, investors, entrepreneurs, and companies are focusing heavily on fin-tech all around the world. Fin-tech is not just about easy payment methods but also about saving users money and helping with financial planning. Funded a fin-tech startup in Korea launched their beta service in February of this year. They were founded by MK Wang, HJ Choi, SM Park, and DY Lee who all have backgrounds in the fin-tech industry. Funded is a Korean P2P web platform where borrowers and lenders directly solve their needs. For the borrowers they will get to have lower rates while the lenders will receive higher returns. Funded is being incubated by one of the largest financial asset holders in Korea called KB Financial Holdings.

So what does Funded actually do? Funded creates a mid-rate loan market with rates of 7-15%. This is considerably lower than savings banks or Capitals, whose average rate is over 20% per year. Funded is able to do so by finding out who are the “decent” borrowers from “risky” borrowers. They then cut out financial intermediaries and connect direct finance from individuals.

funded

So which borrowers are considered “decent”? Funded targets individual credit loan borrowers with a credit rating of 5-6. This would be about 28% of the population. They do also handle small business loans as long as there is secured collateral.

Funded’s platform will be an alternative to those that are tired of the increasing regulations from banks. While there are other P2P lending platforms, Funded has an advantage in that their ability to adapt finance to technology. They manage risk by presenting the best investment products by selecting loans meticulously and offer a protection from defaults called “Funded Care”. They are continuing to build a better engineering system for better automation which can reduce operating cost in the future.

Funded’s main goal is to cut out the middle man, the traditional financial intermediaries that make it hard for borrowers to get loans. As the business grows Funded hopes to be the standard for P2P lending in Korea.

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