How Thousands of Working Americans Delivered Over $275 Million Into Communities Needing Access to Capital

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Dec 18, 2023, 09:00 ET

These Americans Have saved U.S. borrowers over $30 Million in Fees and Highlighting the Positive Impact Community Finance Has On Americans vs Traditional Platforms

LOS ANGELES, Dec. 18, 2023 /PRNewswire/ -- SoLo Funds, the largest community finance platform in the U.S., is proud to share that its users have delivered over $275 million directly to underbanked communities by funding over 1 million requests for everyday necessities. This has saved U.S. consumers an astounding $30 million in fees versus the current market leader for this underserved demographic which are subprime credit cards. This activity continues to demonstrate the impact SoLo's community-driven model for consumers who have been overlooked by legacy financial services. Reaching this milestone is a testament to the SoLo members who support each other every day.

More than ever before, millions of Americans are living paycheck to paycheck with limited savings and an inability to endure an emergency need. There seems to be no end in sight as our nation's wealth gap has never been wider. Americans are in desperate demand of financial services designed for their unique needs, and not solely the needs of the wealthy. SoLo Funds' mission is just that, to build a community powered by the people it serves.

Based in Los Angeles, SoLo is a community finance company powered by people. SoLo enables its members to borrow and lend to and from each other. Its lending members make returns via tips while its borrowing members gain transparent access to emergency loans at significantly less cost than the dominant market provider - Subprime credit cards. In early 2023, the company crossed over 1M users, becoming one of the largest community finance companies in the world. Founded in 2018, SoLo Funds has surpassed market expectations by addressing a clear unmet financial need for Americans. This solution has successfully delivered a solution that is more affordable, transparent and equitable than much larger financial institutions.

Most financial institutions at large have yet to deliver products for these consumers outside of payday loans and subprime credit cards. As the only Black-owned financial services Certified Benefit Corporation in the U.S. and Canada, and with 82% of its members from underserved zip codes, SoLo Funds has emerged as a new financial service leader on pace to deliver $1B back into underserved communities by 2024. Earlier this year, SoLo Funds released its 2023 Cash Poor Report and proposed the concept of a Total Cost Rate (TCR) as a replacement for the outdated APR. Cash poor Americans pay over $25 billion a year in fees when borrowing money. Subprime credit cards cost consumers $10.2 billion more in fees than peer-to-peer loans annually, according to the recent 2023 Cash Poor Report. SoLo Funds is not only advocating for better access to capital, but also for more transparency to protect consumers when considering the total cost of borrowing.

"We are grateful we're able to assist our users when most have let them down," said Travis Holoway, Co-Founder and CEO of SoLo Funds. "Reaching this milestone is a testament to our members and a pivotal moment in our history where we have finally created a solution for the communities we represent. We are extremely appreciative of this moment and opportunity."

SoLo was founded by two best friends, Travis Holoway, and Rodney WIlliams, as they both shared experiences of friends and family needing access to short term loans where in most cases they had to go without basic needs. Travis and Rodney designed a solution that is providing democratized short-term access to capital and returns at a scale that has never before been achieved.

For more information on SoLo Funds, visit https://solofunds.com

About SoLo Funds
SoLo Funds is the leading community finance platform focused on middle class communities. Members borrow on their own terms, and lend to make a return or a social impact powered by its industry leading financial technology model. As the only Black-owned fintech Certified B Corp in the U.S. and Canada, SoLo Funds has emerged as the new financial services leader on pace to deliver $1B back into underserved communities by Q1 '24. The traditional financial system has failed our communities, excluding them from returns and access to short term loans. SoLo created something different, something more human. They went back to the basics, creating a community where people could support each other financially. SoLo calls this community finance.

Media contact
Brennan Nevada Johnson
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SOURCE SoLo Funds