Community Development Finance Association press release
Immediate release: Friday 15 October
Awards recognition for community loans portal
The cdfa is celebrating today after learning that a new finance portal it is developing has been shortlisted for a prestigious international award for microfinance.
Working with the leading technology developer of online lending marketplaces RedCloud, the cdfa is developing ‘Ourbnk’, an online platform that will allow customers to apply for affordable loans from their computer or mobile phone.
The scheme is one of five entrants to be shortlisted in the Technology category of the Innovation in Microfinance Awards, which will be announced on 27 October in Washington DC.
Ourbnk will help those who have been turned down by high street banks to find finance, while also building the capacity of community development finance institutions (CDFIs) to reach new customers and address market failure by the banks.
CDFIs provide loans to small business owners, social entrepreneurs and individuals who can’t raise the finance they need from commercial banks. However, the high volume of loan enquiries and applications experienced by CDFIs means that they are frequently unable to service the high level of demand from customers. Loan enquiries and applications are currently dealt with either by telephone or face to face.
As their trade association, the cdfa is offering CDFIs Ourbnk to streamline the due diligence process – making it easier and quicker for them to lend, and enabling them to increase their scale and reach. Ourbnk will also use social media networks to attract new customers to CDFIs.
Bernie Morgan, Chief Executive of cdfa, said: “We’re very excited to be developing Ourbnk and thrilled that it is being recognised by the Innovation in Microfinance Awards. By tapping into new technology we can massively increase the scale and reach of CDFIs and offer thousands of people a financial lifeline.”
Justin Floyd, Founder of RedCloud said: “Small businesses are starved of loans from Britain’s cash-strapped banks and yet there is still significant funding available through the CDFI network. We are using the power and reach of the internet to bring them together so that businesses and people can find loans more easily and effectively.”
Ourbnk is currently in pilot phase and the cdfa and RedCloud aim to launch it by the end of the year.