Monday, July 4

Bling: up to 100 euros without interest

For the co-founder of the financial start-up Bling, the secret of the success of your project is not so much a good product as a huge need in the market. Benjamin Daudignac refers to the habit of asking for money at the end of the month to prevent bank overdrafts and to do so especially in Spain, which according to this company is the most predatory European market for obtaining advances of this type. “If we exist it is because banks and credits they abuse excessively, if it were not the case, perhaps there would be no place for us ”, justifies this manager. Against that, its platform offers loans of up to 100 euros without interest.

The application was released in the French market and has been available in Spain for just over half a year, but in this time it has already advanced one million euros to a total of 100,000 users. In addition, the company already plans to triple the size of its workforce in Barcelona -where it actually has its main office- and go from the current 80 workers to 250 in a year.

“The objective of Bling is to help people not to pay overdraft fees, because in Spain, as in France, when the bank account is in the red, a lot of commissions are paid,” explains this co-founder. “We have come to see a company that to lend you 300 euros, asks you for 100 in expenses,” he exemplifies.

Instead, they offer microloans at no cost, but they arrive in three days. In fact, to earn money they rely on a kind of ‘premium’ version For which they charge 7 euros in exchange for the transfer being immediate. “It is still an operation four times cheaper than what it would cost you in a bank”, defends Daudignac. “It is not a very profitable model for now, but that is not a problem: the idea is to have many users today and, in the future, add more options and functionalities in the application,” he confesses.

Celebrity backgrounds

Currently the money that feeds these loans comes from their investors, both conventional and ‘celebrities’ to whom they have promised an 8% interest per year for depositing their savings in Bling. In the long term, however, your strategy is to become a neobanco but aimed at the people with problems making ends meet, a space that they believe is not covered. “The idea would be to make a bank for the people who are left behind, who end up paying the most commissions to the banks and who are the most affected,” he agrees. Romy Bounan, head of Bling in Spain.

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The other key to your business is that to get this advance, the user has to give the application access to their accounts. Thus, an algorithm studies the viability of that person as a recipient of the advance. If even then the money is not returned, the company has a department that is dedicated to negotiating with the debtor how and when to pay the debt, although it is not something that particularly worries them: if the companies in the sector have an average of 15 defaults. % or 20%, they currently only accumulate three cases.

“The maximum advance of the application is 100 euros: 100 euros are not dangerous and are easy to reimburse”, justifies Daudignac.

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