Frello, the brainchild of co-founders Chris Harder and Matt Marek, has officially launched its Beta version in the first quarter of 2024, setting the stage for a wide-scale app store release later this summer. Frello introduces a refreshing and innovative approach to personal loans, redefining the borrowing and lending landscape by connecting peers and fostering a sense of community.
Chris Harder, the CEO and co-founder of Frello, shared the genesis of the idea, stating, “I brought this idea to my business partner Matt Marek because he had the Tech team to be able to bring it to life.” Together, they envisioned a platform that goes beyond traditional lending institutions, emphasizing the power of community support.
At its core, Frello is not just a lending platform; it’s a social network for financial empowerment. The platform connects individuals with financial needs to those willing to lend, creating a symbiotic relationship that goes beyond transactional exchanges.
One of the standout features of Frello is its user-friendly app, designed to make borrowing and lending straightforward and transparent. When borrowing through the Frello app, users have the unique experience of borrowing from their peers, potentially right within their community. Chris Harder describes it as the “Tinder for personal loans,” where borrowers can scroll through a vertical feed and choose from various loan offers.
Chris elaborates on the borrower’s journey, stating, “You go on; you decide how much money you need. Remember, it’s all small personal loans. I’m not gonna tell you the amount that we’re going up to yet because we’re still kind of settling on that, but think of $500 jam, $1,000 jam, $1,500 jam, that kind of thing.”
What sets Frello apart is the unique bidding system that allows lenders to make blind bids on loan requests. Lenders propose different terms, such as the loan amount, interest rate, and repayment period, creating a marketplace that empowers borrowers to choose the terms that best suit their needs.
“The bids set the market, and the market sets itself for the person in need. They then choose from all of these bids the one that’s best for them. Is it the lowest cost of funds? Or is it the one with the longest term so that they’ve got time to make the payments and have smaller payments to get back on their feet? This is the antithesis to payday loans. This is the solution to all of these other solutions out there where they’re just kicking it down to your next paycheck,” explains Chris.
Frello’s commitment to transparency and simplicity extends to its lending process. Borrowers have the flexibility to decide how much to borrow, how often to make payments and the timeframe to pay it back. The app ensures that users always know the exact terms of their loan without any hidden fees.
On the lender side, Frello offers a unique opportunity for individuals to invest in their peers. Becoming a lender provides access to thousands of borrowers seeking loans. Lenders can bid on loan requests, and once accepted, Frello takes care of the rest – from sending the money to collecting payments and depositing them into the lender’s Frello account.
Chris emphasizes the safety net for lenders, stating, “Every single loan is guaranteed backstopped by an insurance pool that reimburses any lost loans.” Frello takes responsibility for loans that are too far past due, ensuring that lenders are protected and reimbursed in the form of a Frello credit in their Frello wallet. This credit can be reinvested at any time.
“The reason I’m doing this is because the very idea itself came from a real-life act of generosity that changed the recipient’s business in a big, big way! I wanted to figure out how to do that for everyone! I’m truly excited for this to help revolutionize the industry of investing and make it fun and trustworthy again,” Chris shares, expressing his passion for Frello’s mission.
In closing, Chris also offers words of encouragement to those with dreams and missions, urging them to find the missing pieces and not let excuses hinder their pursuits. “I’m living proof that not only can it happen, but it can happen at warp speed in the biggest of ways, and you can change the world,” he affirms.
Frello’s Beta launch marks a significant step towards reshaping the lending landscape, fostering a sense of community, and providing financial empowerment to individuals. As the app prepares for its wide-scale release in the late summer of 2024, it promises a revolution in personal loans, making borrowing and investing more accessible, transparent, and enjoyable for everyone.
Published by: Nelly Chavez
