The immediate fixed-cost and directly available mini-loan market is attracting banks. After BNP Paribas and its subsidiary Floa, LCL is launching Flex, which allows you to borrow between 200 and 2000 euros, without any proof.
This is new for LCL. The bank now offers a mini-credit whose amount can reach 2000 euros. The sum is credited immediately to the bank account, without proof and available in the crowd. The management fees are fixed, between 2 and 20 euros depending on the amount borrowed. LCL has decided to name its service Flex. This simplicity of subscription 100% digital meets the expectations of LCL’s clientele of young urban dwellers who want instantaneous and autonomy, explains the bank in a press release.
Customers affected by this offer are notified by a notification on their app. They can then simulate, then subscribe to Flex in a few clicks with an electronic signature directly in their LCL My Accounts banking app, details the bank.
A comfort that has its downside: this type of very short-term loan escapes the rules (pre-contractual information, verification of creditworthiness, etc.) of consumer credit. It is a product that was missing from our range, underlines Yann Lhuissier, member of the LCL executive committee in the columns of Echoes. The fintechs were right: in ten days of service, we record between 300 and 400 operations per day. This is well beyond the objective of 100,000 annual credits on which we are building.
Instant Mini Loans: Can You Trust Bling, Floa, or Cashper?
In France, Bling, FinFrog, Floa (a subsidiary of BNP Paribas) or Cashper dominate the market. At the end of March, the Prudential Control and Resolution Authority (ACPR) decided to take a closer look at the sector to avoid misuse, in particular because these mini-loans are aimed at people with often fragile finances. Last year, the consumer defense association UFC-Que Choisir also attacked several players and denounced certain levels of costs.
Pool your credits! Up to -60% on monthly payments. Response in 48 hours
A warning that had prompted Bling to suspend his activity.
Consumer credit: the comparison of online offers