Not all is lost in the online lending space. TechCrunch reported on Thursday (June 16) that Payoff has raised a nice payoff of $46.7 million, which itself is only part of a $67.4 million financing round. The company makes loans to people who seek to pay off their credit card debt.
The firm targets millennials, offering what the site said represents a financial personality test . The holistic approach seems to be one where quizzes can help users understand financial best practices.
The firm has been focusing its energies on finding reliable borrower profiles but has been shying away from would-be customers that have a subprime score below 660.
The money being lent out comes, mostly, from Eaglewood Capital Management. And Payoff has been seeking to bring education in tandem with games. The publication also noted that, according to financial consultant Todd Baker, some online lenders must transition to resemble traditional models, perhaps emulating or doing business with those firms. The firm struck a deal earlier in the year, partnering with Moven to continue work on money management, while quizzes and content will keep people busy.