Nadeem Siam, has created Fund Ourselves, a startup which uses peer-to-peer lending to offer lower rate loans to borrowers and returns of 5% to 15% for investors.

Tackling something that he calls ‘the Wonga problem,’ the high-cost short term loans industry has come under fire for the last decade for charging exorbitant rates which often exceeded 1,000% and many have been referred to as legalised loan sharks. 

Following the introduction of strict regulation by the FCA in 2015, many high-cost lenders and brokers were de-powered and subsequently left the industry.

Since 2018, the FCA has encouraged ex-customers to claim for any mis-sold loans, that were lacking in any eligibility or affordability checks and created financial debt for many.

As a result, the UK’s largest lenders in the space have been fined millions, or hundreds of millions, forcing the likes of Uncle Buck, Wonga, QuickQuid and The Money Shop to fall into administration.

However, with three million people still actively looking for and using high-cost loans or ‘payday loans’ each year, Siam believes that it is an important opportunity to serve the market. 

“We want people to leave in a better financial position than when they started,” Siam explains. “And not worse off than before.” 

Fund Ourselves is a P2P fintech provider, offering loans that range from £50 to £500, provided directly from other individuals on their peer-to-peer platform. There are no charges applied for early repayments, and the maximum interest borrowers will pay back is 0.8% a day.  

A unique selling point is that customers can borrow for up to three months, but receive an interest-free extension for up to 12 months if they are facing financial difficulty.  

As a P2P platform, Fund Ourselves offers individuals the chance to invest their money into other borrowers looking for unsecured loans. The potential earnings for lenders range from 5% to 15% per annum based on the level of risk that they take on, with bad credit customers likely to pay higher rates. To ensure a diverse portfolio, investments will be spread amongst multiple borrowers, so you never have more than 10% in one individual.   

Fund Ourselves founder, Siam explained his vision, “We are totally committed to provide smarter and simpler ways to deliver financial services, helping individuals to borrow or invest in a self-serving marketplace that is easy and safe to use. We believe we can empower people by disrupting the status quo with our Fintech products and chance the way people go about their financial lives.”