Surge in Loans from Stimulus Also Pushed Company Over $1 Billion in Lending, Which Makes it The First Fintech to Reach That Mark In 16 Month Timeframe
SAN FRANCISCO--(BUSINESS WIRE)--Figure Technologies, Inc., a leader in transforming lending through the power of blockchain technology, announced today it has seen loan applications soar by 300 percent since the Federal Reserve stimulus rate cut, pushing the amount of loans it has funded to over $1 billion.
“The 300 percent increase in applications suggests consumers are eager to take advantage of unprecedented lower rates across mortgages, HELOCs and student loan refinancing. Consumers will benefit through lower debt costs and, for cash-out refi and HELOCs, more cash on hand,” said Mike Cagney, co-founder and CEO of Figure. “I believe this is the fastest a de novo fintech has exceeded $1 billion in funded loans. We couldn’t have supported this type of growth and innovation – like the 5-minute HELOC – without the platform we built on Provenance. Look for even more innovative solutions tied to these lower rates in the near future.”
The surge in applications came on the heels of last week’s Federal Reserve rate cut, a move designed to prop up the U.S. economy in the face of a global economic slump and the coronavirus pandemic sweeping the globe.
Figure says the average size of loans applied for during this lending surge is about $50,000 per household.
Figure became the first financial business in history to bring lending to the blockchain when the company opened its lending business in October 2018. The company’s blockchain platform Provenance processes consumer loans for Figure and a growing number of the world’s premiere lenders. A year after opening for business, Figure was already originating $85 million of loans each month, an unheard of technological and financial accomplishment.
In December 2019, Figure closed a $103 million Series C funding round led by Morgan Creek Digital and joined by MUFG Innovation Partners Co., Ltd and other new and existing investors, bringing the company’s total funding to more than $225 million and the valuation to $1.2 billion.
About Figure
Figure Technologies is transforming the lending experience for consumers through the power of blockchain technology. Figure can take loans from application to funding in days, not the weeks-long process offered traditionally. Currently Figure offers HELOCs, mortgage refinancing and student loan refinancing and plans to continuously expand its portfolio of products. Figure originates, finances, services and sells all of its loans through Provenance, the company’s proprietary blockchain platform that leading financial companies around the world will soon use for loan origination and other functions. The company was founded by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion dollar business under his leadership as CEO.
Contacts
Sutherlandgold for Figure
Carly Sylvester
Figure@sutherlandgold.com