FinTech: Loans at Figure Tech Jump 300% after Last Week’s Rate Cut by the Fed
The Fed’s rate cut, aimed as a stimulus, did exactly that for Figure Tech.
Figure Tech, which operates a blockchain-based lending platform, announced its aggregate loans funded had shot above $1 billion. Loan applications soared by 300% after last week’s rate cut by the Fed, leading to the achievement of that magic figure. (CROWDFUND INSIDER)
“I believe this is the fastest a de novo fintech has exceeded $1 billion in funded loans,” said Mike Cagney, co-founder and CEO of Figure Tech, in a statement.
Low interest rates will benefit consumers
Cagney further said that the sharp increase in loan applications indicated that consumers wanted to capitalize on the record low interest rates now been charged across mortgages, HELOCs and student loan refinancing.
According to Figure Tech, the average loan size during the latest surge of applications was about $ 50,000 per household.
Cagney said falling interest rates will reduce borrowing costs for consumers. Borrowers in the cash-out refi and HELOCs categories will benefit from higher cash in hand.
Figure Tech: Blockchain-based market leader
Figure Tech was a pioneer in building a financial lending platform on a blockchain foundation. Its in-house blockchain platform, dubbed Provenance, processes loans for both Figure and several other lenders.
According to the Provenance website, financial institutions have already transacted over $ 1 billion in assets on its platform. In doing so, they have realized over 130 basis points of savings.
Last month, Figure Tech launched a video ad campaign that explains how the company uses the blockchain for its lending activities. The key comic character is called “Blockchain.”
The ad intends to educate people who do not know or understand the blockchain. The titular character admits in the video that many “don’t know what he does.”
Figure claims it was the first financial business in history to marry financial lending with the blockchain when it launched for business in October 2018. But within a year, it had notched up a loan rate of $ 85 million per month – “an unheard-of technological and financial accomplishment.”
Related Story: FinTech: Digital Lending Platform LendUp Notches Up $2B in Loans
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