Revolutionary fintech offers interest free advances to end vicious cycle of payday loan debt
A revolutionary fintech aimed at eradicating crippling payday loans by offering interest free advances has trialled in Scotland with the support of ethical investor Fortunis Capital.
Karma (getkarma.co.uk) allows employees monthly salary advances of £300 with zero interest - in stark contrast to the punitive rates charged by some lenders.
The ground-breaking smartphone app has conducted consumer tests in Scotland with the backing of Fortunis. We are a Home Office approved Endorsing Body who specialise in tech investments that transform society for the better.
Employers signing up to Karma can advance staff £300 on their salary to purchase goods and services at retailers – in person and online - including Tesco, Asda, Morrisons, Waitrose and Amazon. Employees pay no interest or fees and, unlike current lending schemes, may improve their credit rating.
The Scottish Government has welcomed Karma, with Innovations Minister Ivan McKee describing the company as a “fintech seeking to solve a major societal challenge”.
Karma has also been supported by the FCA sandbox programme which tests new products in a regulatory framework.
CEO Minck Hermans said: “We have built not just a solution, but are starting a global movement, to disrupt the short-term consumer loan market and eradicate the pain this causes.
“Employers are rewarded with increased productivity and employee engagement, plus the recognition that they are doing the right thing; employees are empowered with more control of their finances; and our retail partners are rewarded with more business. Everyone wins.
“This will end the necessity of people relying on crippling short-term loans for essentials, or to meet unexpected costs, in order to bridge that gap before payday.
“Concerns around money are at the forefront of the minds of employees across the UK. Karma can provide that safety net of support without the worry, stress and anxiety.
“Karma empowers people with confidence allowing them to manage their finances, with resultant physical and mental well-being benefits.
“Our completed tests in Scotland have proved to be hugely positive, as has the initial reaction from Scottish agencies and the tech sector.”
Fortunis Chief Operations Officer Justin MacRae said the initial ambition is to deploy up to £500million a year. Fortunis invests in the fintech, greentech, bio and medtech and wellness sectors.
Mr MacRae said: “Fortunis is built on fundamental core values: we believe in innovation over exploitation. Our investors share the same ethos, the same mission. Innovation is where you will find us.
“We support disruption and change for the better. We pursue the adoption of new ways of thinking, always asking the same questions: how do we improve the situation? How do we make this better?
“We only invest in technology and solutions that have a great team and come to us with a problem worth solving that creates a positive change for society.
“Karma joins the industry-accredited fintech cluster in Edinburgh, where it has found a depth of talent, an open and collaborative environment with the University of Edinburgh’s Bayes Centre and positive reaction from government groups.
“With Scotland open to attract technological investment in the nation’s social capital, this is the perfect environment for ethical fintech companies such as Karma to flourish.”
Ivan McKee, Minister for Trade, Investment and Innovation, said: “Scotland has a worldwide reputation for attracting innovative businesses such as Karma and providing them with the opportunity to grow and prosper. It’s a pleasure to welcome Karma here, particularly as a fintech seeking to solve a major societal challenge and make lives better for people in Scotland, and across the globe.”
The Home Office said: “As a Home Office approved Endorsing Body, Fortunis Capital have endorsed Karma to be based in the UK through the Innovator Route.
“The Home Office Start Up and Innovator Routes actively encourage innovative, scaleable and commercially viable businesses to be based in the UK, in support of our economy.”
Head of Fortunis strategy in Scotland is Edinburgh-based David Russell Consulting. Founder David Russell said: “It has been a real pleasure providing strategic connections to Fortunis Capital over the last few months. Karma perfectly fits the mould of a typical Fortunis investment. It is a company which will grow and succeed on a commercial level and will benefit Scotland, its people and its economy.”
INSIDER ARTICLE
Scottish Financial News Article
Potential Investors and investees can contact Fortunis Capital on:
T: +44 (0)208 012 8551. E: info@fortuniscapital.co.uk W: fortuniscapital.co.uk
Fortunis Capital. 33 St James Square, London, SW1Y 4NS.
About Karma
Karma’s mission is to rid UK of the unsecured individual debt problem which currently stands at £340billion by making funds available with no interest costs/no fees/no hidden costs and at the right time, the two fundamental reasons for spiralling individual debt.
Creating an innovative business model implemented on a technology platform enables Karma to execute the above plan efficiently while recreating, innovating and challenging the fundamentals of finance in the last 300 years.
Not charging customers whilst making a profit is not counterintuitive.
Karma is a technology platform comprising employers, retailers, employees and consumers enabling them to transact and solve each other’s problems and allowing all of them to take back value from the system seamlessly
Karma is led by a strong entrepreneurial and technology team with experience in blockchain, Kubernetes, AI, banking, payments, product development, business development, robotics, wealth management, law, tax, accounting and execution.
Karma is different to many fintech businesses in spirit and in reality, as Karma will:
Improve efficiencies
Aim to eradicate debt at an individual level
Improve financial discipline in restricting excess spend
Help out with default rather than punishing it
Karma was supported by the FCA sandbox programme which tests new products in a regulatory framework.
Karma may improve your credit score. It is free to use – no fees, no subscriptions and no interest.
Karma does not partner with companies in the gambling industry, including bookmakers. Users can sign up direct with getkarma.co.uk and take advantage of discounts from retail partners.
Employers interested in providing this benefit to employers can register their interest here:
W: getkarma.co.uk T: +44 7 494 648 304 E: info@getkarma.co.uk
Karma, 18 Finsbury Square, London EC2A 1A