Fea hopes to make debt less of a sweat
UK-based fintech is seeking £100,000 through equity crowdfunding platform CrowdCube to build a mobile-first, fixed-fee credit card that makes borrowing “a better experience.”
The credit card is controlled entirely through a mobile app called Fea, and is due to release next year.
The idea comes from Fea co-founder Faisal Khalid, and his personal experiences with $130,000 of student and credit card debt. The team came together earlier this year, and includes veterans from Nationwide, Zopa, CapitalOne and LendingClub.
The app intends to generate income by charging a flat fee from consumers, which will be £2 for every £100 they borrow. By doing this, the company aims to “make borrowing a better experience.”
“Credit cards represent a large and profitable business in the UK; we estimate £7bn in annual revenues, and growing – last year credit card balances grew by 9%+.” reads Fea’s CrowdCube page.
By providing a mobile-based alternative aimed at a young, tech-savvy market, the company hope to disrupt a £7 billion market populated mostly by banks like BarclayCard and Lloyds.
“We are coming in as a technology-first player, targeted at millennials, with a proposition around simpler pricing, better borrowing controls, user experience, and higher availability”, the company adds.
The money raised through crowdfunding platform CrowdCube will go toward building the Fea mobile app, hire part of the launch team and apply to the FCA for authorisation. Provided approval is granted, the team will launch prepaid card first in April 2019, with the credit card due to release either September or October of 2019.