What the Startup Company Does
The young fintech startup company acts as an intermediary between the banking and billing systems, offering users convenient payment plans and reminders to pay. The efforts of the company are all part of an attempt to make managing one’s finances more manageable, the CEO of the business, Phaedra Ellis-Lamkins, told TechCrunch.
“We have found that people struggling to pay their bills want to pay and will pay at extremely high rates if you offer them reminders, accessible payment options and flexibility,” she said. “The systems are the problem — they are not designed for people who don’t always have a surplus of money in their bank accounts.”
What Is the Need for the Company?
Ellis-Lamkins said the problem with the current fintech industry, particularly as it relates to applying for payment plans, is that it’s much too difficult. And, she said, the fintech startup company already has a stellar rate of repayment.
“Some cities offer payment plans but you have to go in person to sign up, complete a multiple-page form, show proof of income and meet restrictive criteria,” she said. “We have been able to work with our partners to use self-certification to ease the process as opposed to providing tax returns or other documentation. Currently, we have over a 90% repayment rate.”
If Promise continues at this rate, the fintech company has a lot to gain in the wider fintech business.
The Value of the Startup Business
As of the middle of 2019, the global fintech business was worth an amazing $187 billion. Now, that figure is even higher, and the fintech business is expected to continue growing at a compounded annual rate of 23.58%.
So, even with all the uncertainty of 2020 and 2021 caused by COVID-19, the business of fintech and helping others manage their finances in a healthier way is not slowing down. Promise could be the fintech startup company at the center of that growth.