The Belgian fintech startup mozzeno is launching the first digital platform to enable private individuals to participate indirectly in financing loans to other private individuals.
For borrowers, this makes it possible to obtain a financing loan indirectly from other consumers like them, outside of the banking system. The interest to be paid is transferred to the investors financing the loan.
Xavier Laoureux, co-founder of mozzeno, explains:
We wanted to get back to the roots of the banking system back when the disposable money of some customers was used to finance the projects of others, without undergoing complex and risky conversions.
The borrower can digitally finalise their entire loan request via a clear and simple interface, developed with ease-of-use as the primary concern.
For the investor, mozzeno offers access to a new class of asset: Belgian consumer credit. The investor does not invest directly in the consumer credit. mozzeno issues financial instruments called « Notes ». These are similar to bonds. Each loan corresponds to an ensemble of Notes called a « Series of Notes ». The investors invest indirectly in the loans by subscribing to these Notes.
mozzeno has introduced various measures to limit the risk for investors:
Frédéric Dujeux, co-founder of mozzeno, explains:
Of course we cannot talk of guaranteed capital investments, but we have done all we can so that the package on offer meets the expectations of as many people as possible while minimising the risks. This is a timely alternative given an environment in which very low interest rates seem here for a while. In addition, investors do not need to have any specific, prior financial knowledge.
Positive Money means loans that respect the borrower. mozzeno only offers simple loans, without revolving credit or credit grouping. This is another reason why mozzeno is very strict in its selection of borrowers. The loan has to suit the borrower’s needs and the borrower needs to be able to prove his or her ability to repay it.
Positive Money also rewards correct repayment. Rather than saddling borrowers with an aggressive APR, mozzeno favours borrowers who repay their loan properly throughout by reimbursing them the costs they have incurred once the loan is paid off.
For investors, Positive Money means the possibility of building up a real return on investment for their money.
mozzeno is now accessible to borrowers and investors via https://www.mozzeno.com
Qu’est-ce qu’une Note et une série de Notes ?