Harmoney challenges traditional finance market

Launched in September this year, Harmoney is a New Zealand based peer-to-peer lending service that connects those who want to borrow with those who want to invest.

Borrowers can use Harmoney to take out a loan between $1,000 and $35,000 in three or five year terms.

After submitting an application, Harmoney assesses the borrower and places them into a credit grade from A to F with an associated interest rate.

Investors choose the loans they fund and put in anywhere from $25. They receive monthly repayments including interest for the extent of the loan.

The lending service disrupts the traditional finance market by using technology to minimise the cost of financial intermediation - the benefits of which goes to the users.

"Harmoney was founded […] to liberate lending, by introducing a marketplace finance model that changes the way Kiwis think about money, for good," the website reads.

"We don't believe that money is everything, but we do believe it's an effective tool to remove barriers, and find a balance between what people want, and what they need," it says.

The online service was the first to receive a peer-to-peer lending licence from the Financial Markets Authority, after the Financial Markets Conduct Act was passed and peer-to-peer lending was enabled in New Zealand.

When it was launched, Neil Roberts, Harmoney, CEO and founder, said $100 million in lending capital was available from four main funders including Heartland Bank.

Any Kiwi 18 years old and up with a valid New Zealand driver's licence is eligible to invest or apply for a loan through Harmoney.

This December, Harmoney is running a campaign for those who want to take out a personal loan. Borrowers will have the chance to win a $100 Mitre 10 gift card.

Click here to find out more and check out the Harmoney website.