The Vicious Circle of Debt

In a world where monthly instalments, credit cards and accessible loans have taken over, the use of these services have transferred from need, to greed. As such, many people have become trapped in a vicious circle of debt. Hidden fees, marketing ploys and complicated repayment terms – for some it seems that there is no escape. Anyfin, a Social FinTech startup has spotted this problem. They are armed with a tech-savvy management team that knows the insides of risk assessment and credit. Furthermore, they have the motivation to try and repair the credit industry. “It has been a long time since someone actually cared about you, the customer, least of all the creditors.”. They launched Anyfin in 2017, in order to help take down the ‘loan sharks’ of the credit industry.

Anyfin – Refinance your Debt

Anyfin is a Social FinTech startup that is based in Stockholm. The basic premise of Anyfin’s service is that they offer to pay off your debt, in order to replace it with one of their own loans with a better interest rate. Anyfin states that on average, they save their customers over 50% by refinancing their loans.

«Be smart.
Pay less.»

They offer this service with most types of debt (including credit cards) but they’re not targeting mortgages. Each person can refinance multiple loans. However, the total refinancing limit per individual is capped at 100,000 kr (around €10,000). All you have to do is simply snap and send a couple of pictures of your repayment history. Their «smart technology» (AKA their AI algorithm) «does all the heavy lifting» then if possible, they’ll offer you a loan with better terms which you can accept with a click. No paperwork needed. Unfortunately their service is currently only available in Sweden. Although, there have been rumours that they want to use their series A funding for a european expansion…

How do they do it? – Business Model

Let’s explain the business model a bit more in-depth. Anyfin offers to refinance consumers’ debt with personalised interest rates. These competitive interest rates are based on an overall evaluation of the individual using a «completely automated process». The evaluation consists of: publicly available consumer data, repayment history from the pictures sent, your credit score and the AI-powered risk assessment technology that pieces it all together.

All of the above keeps prices low. They don’t pay wages to their AI tech and they get a more comprehensive picture of your financing situation. Additionally, Anyfin doesn’t have ‘expensive intermediaries’. Furthermore, they state on their website that they’re «fine to earn less than others in the industry» (seeing as traditional creditors are overcharging anyway). Anyfin claims that their mission is to «reduce the burden of debt on society, making sure that nobody is paying more than they should. Hence this combination of factors allows them to offer better rates.

Social FinTech Observations

Anyfin also has a strong management team – here is a short excerpt from their website: “We have more than 20 years of experience from risk assessment, credit and technological development from some of Sweden’s leading technology companies, iZettle, Klarna and Spotify. Together with people specialising in design and programming, artificial intelligence and credit counselling. We are driven by wanting to change, challenge and create a fairer industry. On this journey with us, we also have some of the world’s leading venture capital firms, Accel, Northzone and Global Founder Capital. Together, they have been behind several companies that have revolutionised how we live: Facebook, Spotify and LinkedIn.”

Along with their competent team and network, this Social FinTech startup has that ‘transparency aspect’ which recent FinTech Challenger Banks have adopted. Furthermore, this is mixed with a social enterprise feel as they claim the following. “If the day comes when creditors start offering fairer rates and clearer terms, we will no longer be needed. Nothing would make us happier.”. Showing that they really do just want to eradicate those unfair rates…