Scratch that lendtech itch with new loan servicing platform
San Francisco-based start-up Scratch wants to catch the eye with the launch of its digital loan servicing platform.
The firm was started in 2015, and like many other start-ups is looking to liven up the lending space. Its plan is to “transform the antiquated business of getting America’s $13 trillion household debt repaid”.
The Scratch platform, which includes APIs, gives borrowers a web application for understanding, managing and paying back their loans while providing lenders real-time portfolio insights. It automates the back-office “complexities” of loan management.
Sameh Elamawy, co-founder and CEO of Scratch, says: “We knew it couldn’t be just some app tacked onto the existing infrastructure or ecosystem. Real change would have to be more foundational. Rather than trying to build a better loan servicer, we set out to replace the loan servicer altogether with a platform for debt that empowers borrowers and brings them closer to their lenders.”
The company reckons it has a large market to tap as it says eight out of ten Americans carry some type of debt, including mortgages, credit cards, student loans, and auto loans. “And everyone who has a loan has a loan servicer.”
Its technology is designed to simulate and unwind any loan transaction, “which means no human needs to touch” loan accounting, treasury management, or reporting.
Built by a team of Silicon Valley “consumer tech nerds”, Washington DC regulatory “wonks”, and “recovering Wall Street bankers”, Scratch’s headquarters are in San Francisco.
Its investors include Index Ventures, Ribbit Capital, Founders Fund, Nyca Partners and CFSI JP Morgan Chase. The firm seems to be up to scratch as it has raised $17 million from investors to date.