The Story Behind Penny: From Idea to Fintech Platform
What Penny Does
Penny is a software platform that helps brokers place deals more efficiently by matching applications to suitable lenders.
It assesses key factors such as credit profile, affordability, employment, and overall client profile to determine which lenders are most appropriate.
The goal is to reduce time spent on admin and repeated submissions, allowing brokers to focus more on client relationships and deal flow.
It also includes a referral function, allowing brokers to pass deals on if they are unable to place them, while still receiving commission.
The Problem It Solves
A large portion of a broker’s time is spent collecting information, chasing clients, and managing back-and-forth with lenders.
Penny aims to streamline this process by centralising data and improving decision-making speed.
Building a Fintech
Developing fintech software can vary significantly in cost.
Basic platforms can be built using modern AI tools for approximately $20,000–$40,000. However, once compliance, security, and custom infrastructure are required, costs can increase into the hundreds of thousands.
Development also requires strong technical support. Finding a reliable development team is critical, particularly when dealing with financial data and system security.
Funding
Penny was self-funded, with development staged over time and reinvestment from existing business income.
There are also alternative funding options available for fintech startups, including venture capital, angel investors, and startup support networks.
Advice for Starting in Fintech
Ensure the idea has real-world validation
Be prepared for a long and challenging development process
Focus on building the right team
Take advantage of available funding and support networks
Stay consistent and committed to the long-term vision
This episode provides insight into the realities of building a fintech platform and the opportunities available within the industry.
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