“Students sometimes face one-off cash flow problems. Some people have to ask their relatives to help them out, a situation that can be a little embarrassing, observes Alexis Albouze, 20 years old. Others find themselves with a bank account in the red, having to pay astronomical overdraft fees. “ The young man thought of another solution. He co-founded the start-up Moneybounce, in April 2020, with Damien Tamazout and Arthur Thiele. These three students at Paris-Dauphine University allow young people aged 18 to 25 to borrow between 100 and 1,000 euros. Amounts that allow you to buy a new computer, finance a language certificate, a university trip, driving lessons …
The loan platform, of the same name as the company, went online last November. Since then, more than 2,000 loans have been granted for an average amount of 300 euros repaid over six months. Consumer loans taken out by students, but also by young people who work as freelancers – for example bicycle delivery men. They can spread their repayment over three to ten months. In addition to their monthly payment, they must pay a monthly interest rate of 1.1%. Example: a student who borrows 300 euros over three months will repay 103.30 euros each month. Whoever borrows 500 euros over ten months will repay 55.50 euros per month (or 555 euros in total). Clearly, the faster the borrower repays, the less he spends.
For now, Moneybounce is a web platform. An application should be launched by the end of the year.Moneybounce
To obtain a loan, students must submit a financing file in a few clicks, and link their bank account to their request. “We analyze their solvency by observing the health of their account and their expenses”, indicates Alexis Albouze. If the student receives a positive response, he / she receives the funds no later than 48 hours after making the request.
Lend from 500 euros
These loans are financed thanks to the contribution of individuals “Who want to give a sense of solidarity to their savings”, advances Alexis Albouze. For now, the young shoot has raised funds from a small circle of private investors. But “All savers can invest money from 500 euros”, explains the young entrepreneur. Fintech needs it: it faces a strong demand from students, so much so that it is not always able to respond favorably to them, due to a lack of available funds. A request which can be explained, among other things, by the consequences of the health crisis, which has put some students in a sometimes precarious situation. A third of students say they experienced financial difficulties during the first confinement, according to the recent survey by the National Observatory of Student Life.
Lenders agree to block their investments for 12, 24 or 36 months. And this, with an annual interest rate that fluctuates between 4 and 6% depending on the number of loans made (against 0.50% for the A booklet ). The start-up specifies – and it is legal obligation to do so – that these rates are not guaranteed.
What happens if the borrower is unable to repay? “Moneybounce guarantees the reimbursement of lenders via a fund specially designed for payment incidents”, assure Alexis Albouze.
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