LONDCAP, a UK-based “smart” bank account app with an artificial intelligence personal financial assistant Alice, is now seeking funds through its newly launched equity crowdfunding campaign on Seedrs. Founded earlier this year, LONDCAP aims to lend microloans to underbanked customers and enable credit card access to customers without credit history or national insurance number.
“Our customers will have the ability to choose from a set of different payment options ranging from paying directly (up to 30 days later) to multiple interest-free rates. Our ambition is to facilitate loan and mortgage approvals via mobile devices in the space of a few hours.”
The company also noted it makes money in various ways through its platform, including:
- Foreign exchange commission. When a customer exchanges currencies they will perform a cross border money transfer.
- Interchange commission that is paid each time customer conducts payment with a prepaid debit card.
- Monthly platinum subscription that will offer more competitive banking service rates, relevant rewards, discounts from retailers, hotels, airlines, restaurants and other partners that are tailored specifically to customers.
- Commissions from third-party partners that are offering rewards and third-party offers based on customer-specific needs, tastes, and risk profiles (mortgages, car loans, insurance, etc.).
LONDCAP further revealed that it intends to provide loans later as an agent lender, which will generate additional interest income. Funds from the Seedrs round will be used to continue the growth and development of the LONDCAP platform. The company is now offering 9.09% in equity at a £1 million pre-money valuation. The campaign is set to close at the beginning of October.
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