A new tech platform is to launch next year that will enable tenants to pay their rental deposits in instalments but enable letting and agents and landlords to receive the money directly, rather than via the tenant.
Called Fronted, it has been founded by three well-known figures from the world of tech and, because the deposit does not pass through tenants’ bank accounts, it can charge a low interest rate of 12.5% despite being an unsecured loan.
The brains behind the business are former Monzo high flier Simon Vans-Colina (above, centre), former Bud exec Jamie Campbell (right) and Anthony Mann (left), who used to work at Apple.
The platform is still in development but will use Open Banking technology to enable Fronted to assess a tenant’s financial health prior to lending them their tenancy deposit.
CEO Jamie Campbell told The Negotiator that the deposit payment platform is just the first step in his desire to disrupt the world of tenant finances.
The company is due to soft-launch the service with a limited number of tenants in March next year via the Financial Conduct Authority’s regulatory sandbox testing initiative and then fully launch later in the year.
“We know that many tenants struggle in particular when they are waiting for their old deposit to be returned but need to pay a new one at their next rented property,” says Campbell. “Renting is expensive, stressful and at times makes you feel like a second class citizen, and we want to change that.”
Read more about rental deposits.