Instead of offering discounts to people based on how much influence they have on social media, this new venture puts a spin on social currency by offering applicants better loan rates if their friends and family members trust them. Vouch uses a crowdsourcing model by obtaining small financial guarantees from the customer's loved ones.
The lending startup essentially offers better loan rates to those who can find people to vouch for their financial stability. Loan applicants download the Vouch app and can improve their credit core using the trust of their network of sponsors. Family and friends can pledge small sums (starting at $25) towards their loan, which will only be payable if customers default on payments. The more sponsors a customer has, the lower the interest rate.