CEBU, Philippines - A new form of lending facility has been introduced, this time tapping the active social networking community, as loan applications and releases will be made via online.
The Lenddo.com.ph, is one of the world’s first online platform that helps the emerging middle class use their social connections to build their creditworthiness and access local financial services.
Richard Eldridge Lenddo co-founder and chief executive officer (CEO) for Asia Pacific, together with the company’s executives was in Cebu recently to tap the growing number of middle class who are now online-savvy.
According to Eldridge credit worthiness can now be measured through a new strategy called “ Computational Neurological Behavior,” wherein credibility of a creditor can be spotted or studied through their behavior on social network, such as Facebook, Twitter, among others.
Initially, the company is tapping the growing Business Process Outsourcing (BPO) working community in its operations both in Cambodia and the Philipines.
Cebu, which is the second largest BPO destination in the country, offers huge opportunity for this kind of business, he said in an interview.
The company offers loan applications from P5,000 to P40,000 depending on the size of salary an applicant is getting every month.
Since its introduction to the Philippine market in March of last year, Lenddo has a membership size of over 40,000, who are now availing loans from the company, with purposes of educational, medical, debt consolidation, home repairs/renovation, and even enterpreneurial capital.
“Majority of our clients are from BPO sector and we advocate the value of giving them access to financial services and provide them additional lifeline in improving their lives,” Eldridge said.
“Recent years marked the fast growth of the ICT-BPO industry here in Cebu and we in Lenddo are excited to introduce our company here and expand our client-based,” he added.
The company’s business model revolves around using an online platform where members can use their status on social networking sites like Facebook, Twitter, and Linkedln to build their credit-worthiness and have access to financial services, such as life-improving loans.
“We recognized the amount of effort and hard work BPO employees put their profession. We are here to lend them a hand on managing their finances and provide them access to financial services with a unique platform which is basically based on trust,” said Erika Aquino, the company’s community development director.
Lenddo currently provides loans exclusively in the Philippines and Cambodia, and has recently acquired an US$8 million investment to support expansion of team, services and operations.
The company aims at helping create an economically empowered and thriving middle-class in developing countries around the word, starting with the Philippines and Cambodia.
As soon as the company build its network in Cebu, it is going to set up a physical office here, although its transaction is largely online based, added Aquino.
Cebu’s BPO sector is employing over 70,000 people, and it is expected to add another 100 thousand in the next two years. (FREEMAN)