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SoLo Funds Review 2024
Supported Countries:
- US dollar
Supported
Currencies:
Currencies:
- USA
Deposit rate:
- $0-$5
Deposit insurance:
- According to FDIC
Summary of SoLo Funds
SoLo Funds is a certified public benefit corporation that offers a unique hand-to-hand lending model. This service is available to clients of Evolve Bank & Trust who have installed the SoLo Funds mobile app and are permanently residing in the United States at the time of registration. SoLo Funds was launched in 2018, and in 2023 the number of its users exceeded 1,300,000. SoLo Funds strives to become one of the microlending leaders in the United States. The team has many plans for the future, including going global through SoLo Africa, expanding the range of banking services, and launching new Lending DAO (Decentralized Autonomous Organization, based on blockchain, i.e., currency, technology) and SoLo Pro platforms.
| 💼 Main types of accounts: | Personal |
|---|---|
| 💱 Multi-currency account: | No |
| ☂ Deposit insurance: | According to FDIC |
| 👛️ Savings options: | No credit fees when completing regular payments within 35 days from the start of the loan |
| ➕ Additional features: | Free withdrawals from MoneyPass ATMs; interest on the account balance (coming soon) |
👍 Advantages of trading with SoLo Funds:
- Simple procedure for applying for a loan without providing additional personal data and documents;
- Each user can provide a microloan to other persons to help them in a difficult life situation or in purchasing a necessary product, service, etc.;
- No mandatory interest rate on loans, and “thank you” tips for providing funds are voluntary;
- Several communication channels to contact SoLo Funds’ technical support, including a live chat in the mobile app and email are available;
- To use SoLo Funds’ services, you do not need to deposit funds into your current account, maintain a minimum balance, make a certain number of transactions per month, etc.;
- Evolve, through which individuals and businesses have access to a full range of banking products and services, is regulated by FDIC (the Federal Deposit Insurance Corporation);
- The SoLo Funds mobile app works on any smartphone or tablet, including older models.
👎 Disadvantages of SoLo Funds:
- The company’s services can only be used by US residents, that is citizens of the country and foreigners who have been permanently residing in the country for at least 10 years;
- Maximum loan available is $575;
- SoLo Funds is not a bank, so the range of provided services is limited as compared to both traditional and digital banks.
Evaluation of the most influential parameters of SoLo Funds
Table of Contents
- Geographic Distribution
- Latest Comments
- Expert Review
- Latest SoLo Funds News
- Analysis of SoLo Funds
- Dynamics of the Popularity
- Investment Programs
- Terms for Cooperation
- Detailed Review
- Banking features
- Technical Support
- Social programs
- How to open an account?
- User Reviews of SoLo Funds
- FAQs
- TU Recommends
Geographic Distribution of SoLo Funds Traders
Popularity in
88.4%
US
4%
PH
4.6%
Others
User Satisfaction i
5 comments
Total score:
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Expert Review of SoLo Funds
SoLo Funds does not call itself a bank, but a public funding platform. It can also be described as a financial support community with a human face. The SoLo Funds operating model is innovative and unique which, as of mid-2023, had attracted more than 1,300,000 Americans, large investors, and media persons.
SoLo Funds was included in the list of 50 Fast-Growing Companies, according to the CNBC television channel. When compiling the list, both financial indicators and adherence to set financial, economic, environmental, and other goals were taken into account. SoLo Funds is great at doing the job it was created for, which is “sublending” within a closed community with minimum requirements and accessibility for people of any status and skin color.
SoLo Funds provides services through its proprietary application. Thus, you can apply for a loan or, conversely, provide funds to another person directly on your smartphone. The mobile app interface is tailored to these purposes and does not contain extra buttons, third-party advertising, or unnecessary information. The application also complies with PCI (the Payment Card Industry), a security standard designed to protect payment card data.
Currently, SoLo Funds’ services are available in the United States and Canada (through a representative office), but the company plans to go global and will open soon in Africa. Every year SoLo Funds’ popularity grows, as evidenced by the company’s reports on the number of issued loans and their amounts. SoLo Funds takes a leading position among U.S. FinTech companies. It is primarily managed by black Americans, and its expertise is confirmed by funding awards and a huge client base.
Dynamics of SoLo Funds’s popularity among
Traders Union’s traders, according to 2023 data
Investment Programs, Available Markets, and Products of SoLo Funds
There are currently no active investment offers in the SoLo Funds app, such as savings or deposit accounts, trust management, etc. The Refer a Friend affiliate program is also not available. In the near future, the possibility of receiving interest for holding money in the account will be added.
However, all SoLo Funds’ clients are required to have an account with Evolve Bank & Trust, which offers a variety of investment programs. For example, you can open a savings account and receive quarterly interest on the funds you hold in your account. The minimum investment amount is $100. The maintenance fee depending on the daily account balance is $0-$5, charged every three months. If clients are interested in higher interest rates, they can deposit a minimum of $10,000 and maintain a minimum daily balance of $2,500.
Evolve Bank & Trust offers IRA (Individual Retirement Account) savings accounts, including Rollover IRAs, Traditional IRAs, and SEP (Simplified Employee Pension) plans. The bank's investment consultant will help you choose the best account type for you. Also, Evolve Bank offers Certificates of Deposits that increase capital by holding funds in the account for the period specified in the agreement.
Important!
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of the deal and all the steps from signing up to withdrawal of profits.
Overdrafts, loans, and flex accounts
There is a fee-free overdraft service provided on cards. SoLo Funds is not a creditor, it only connects two people, one of whom wants to obtain an interest-free loan, and the second wants to provide free funds to someone who needs them. SoLo Funds does not charge a fee for this service. Lending is available after a special assessment, which is based on the participant’s activity in the app and analysis of their cash flows.
If borrowers repay loans on time (within 35 days), no fees are charged, that is, funding in the SoLo Funds app can be completely free, subject to certain conditions. Creditors use the app for free, but they could lose up to $173 if their borrowers don't return the money within 90 days as per the agreement. Thirty percent of the total loan amount goes to pay for the services of collectors who work with debtors.
Terms for Cooperation with SoLo Funds
| 💼 Main types of accounts: | Personal |
|---|---|
| 💱 Multi-currency account: | No |
| 💵 Deposit terms and conditions: | Must first open an account at Evolve Bank |
| 💳 Loan terms and conditions: |
Late payment fee is 10%; Maximum loan amount is $575; No mandatory interest if payments are made on time; Voluntary tip system, up to 15% of the loan. |
| ☂ Deposit insurance: | According to FDIC |
| 👛️ Savings options: | No credit fees when completing regular payments within 35 days from the start of the loan |
| 📋 Types of payment: | Bank transfers, bank cards, and ACH |
| ➕ Additional features: | Free withdrawals from MoneyPass ATMs; interest on the account balance (coming soon) |
Comparison of SoLo Funds with other Brokers
| SoLo Funds | Wise | Bunq | Curve Bank | Bank of America | Monzo Bank | |
| Supported Countries | US dollar | Globally | Netherlands, Germany, Austria, Italy, Spain, France, Belgium, Ireland, Bulgaria, Croatia, Slovenia, Republic of Cyprus, Finland, Greece, Hungary, Latvia, Lithuania, Luxembourg, Malta, Norway, Poland, | UK and EEA | US dollar | UK |
| Supported Currencies | USA | 54 currencies | Euro (16 European currencies in the Easy Money plan) | 26 currencies | USA | GBP |
| Deposit insurance | According to FDIC | No | EUR 100,000 | No | FDIC protects depositor funds ($25,000) | £85,000 |
| Minimum deposit | $10,000 | No | No | No | $20 - $100 | £500 |
| Deposit rate | $0-$5 | No | 0.09% APY | No | 2% | 1.16%-1.50% |
| Loan Rate | 2 × (0.9% of the principal loan amount + $0.7) | No | The bank does not issue loans | No | Credit cards ranges from 17.99% to 27.99. Auto loans — 6.19%, mortgages — 6.125% | 0-19% |
SoLo Funds Commissions & Fees
Information
There are no overdraft fees. Creating a user account in the app and using it is free. SoLo Funds positions itself as a social funding platform, therefore it does not charge fees for maintenance, payment processing, or providing statements. All transactions are carried out in USD, which avoids currency conversion fees.
If a person obtains a loan with SoLo Funds, the money is provided not by the platform, but by an individual member-creditor. There is no mandatory fee for such a service, but the borrower can pay a “thank you” tip to the person who provided the funds. The tip is voluntary and is determined by the borrower. It can be from 0% ─ 15% of the loan amount.
Such a system of relationships between borrowers and creditors does not guarantee the latter the return of funds on time and in full. The guarantor is SoLo Funds, which tries to do everything so that a borrower returns the funds to a creditor within 90 days. If this does not happen, the file is transferred to a collection agency, which retains 30% of the returned amount for its services, and only 70% is returned to the creditor. In other words, if a borrower is dishonest or financially insolvent, a creditor may lose up to 30% of the credited funds, since they go to pay for the services of the debt collectors.
If borrowers fail to make due payments within 35 days, SoLo Funds charges them a 10% fee. Also, the payment service providers charge fees for funding transactions and loan repayments. Fees are calculated using the formula: 2 × (0.9% of the principal loan amount + $0.7). The borrower does not pay any other loan fees. SoLo Funds' services are completely free for people who are ready to become creditors.
All users of the SoLo Funds app can use the MoneyPass ATMs to withdraw funds without fees. It is also possible to use the PULSE and PLUS networks, which operate in 120 countries, but transactions conducted with their help are subject to fees. Withdrawals from SoLo Funds can be both paid and free. If clients link their bank accounts to SoLo wallets and use ACH to withdraw money, there are no fees. If funds are withdrawn to an external bank card, the fee is 1.75% of the transaction amount.
| Broker | Overdraft fee | ATM Withdrawal Fee | International transfer fee | International exchange fee |
| Revolut | No | Up to $350 - free - beyond $350 - 2% | 0.3% (min. $0.30, max. $6) | From 0% to 1% |
| Chime Bank | No | No | No | 3% (max.$5) |
| SoLo Funds | Ffee-free overdraft service provided on cards | 1.75% | Individually | Individually |
Conclusion
SoLo Funds is not a bank in the traditional sense. This is just a mobile app, the functionality of which allows its users to lend money to each other without mandatory fees. Borrowers decide whether to pay rewards to creditors. At the same time, they undertake to make payments on time to justify the trust of people who lent them their own funds. Creditors also benefit from using the platform, as their rating within the SoLo Funds community increases, which, if they need funds, allows them to borrow money faster.
Detailed review of SoLo Funds
SoLo Funds is the largest public funding platform in the United States, which operates under a unique model. It allows its users to lend to or borrow from each other on their own conditions and without paying interest or fees. By the first quarter of 2024, SoLo Funds plans to further expand the circle of people interested in sublending services and reach a funding target of $1 billion.
SoLo Funds by the numbers:
-
$400,000,000+ is the amount of issued loans;
-
800,000 is the number of loans issued among members of the SoLo Funds community;
-
93% is the total volume of microloan repayments;
-
15 minutes is the average time for providing funds when requesting them in the SoLo Funds app;
-
$7,000,000 is the total income of community members received as a reward for providing credit funds;
-
1,000,000+ is the number of registered users of the SoLo Funds community.
The SoLo Funds app was created for socially responsible people who are ready to provide their money for temporary use to other community members. In this case, any adult resident of the United States can become a borrower, even with an imperfect credit history and other outstanding loans. Using the SoLo Funds app, you can borrow small amounts without paying interest on the loan. Social lending is a simpler and less expensive type of debt for borrowers, but at the same time, it has certain risks for creditors, as they may receive the money later than agreed and not in full.
Features of SoLo Funds’ business account:
You cannot open a business account or receive services for legal entities in the SoLo Funds app. Services to small entrepreneurs, as well as medium and large companies, are provided by Evolve Bank.
Advantages:
1
Convenient application designed for sublending between members of the SoLo Funds community;
2
Opportunity to withdraw funds worldwide and at local partner ATMs without fees;
3
Fast processing of a loan with voluntary “thank you” tips donated to creditors;
4
SoLo Funds’ services are available to residents of all US states; there are currently no regional restrictions;
5
No requirements for a minimum balance in the user account; thus, community members can receive a loan even with a zero balance;
6
Loans are approved based on SoLo Funds’ own algorithm without taking into account the user’s credit history in other banks and financial institutions;
7
Access to banking services of Evolve Bank & Trust, an FDIC member that has operated since 1925 and is fully compliant with US laws.
Accounts types for private individuals and legal entities
SoLo Funds is a division of Evolve Bank, which is designed to connect borrowers with private creditors. To start using this option, download the application to your smartphone and register a user account. Each SoLo Funds member can be a creditor and a borrower at the same time, so one user account is created to lend to and/or borrow funds from someone.
You cannot open a current bank account in the SoLo Funds app, it must be opened first through Evolve Bank. After confirming your identity and providing all the necessary documents, you can request a loan or provide a loan to another SoLo Funds member. The maximum amount is $575. The number of available loans depends on the results of checking the solvency of a particular client using a unique algorithm.
The internal wallet in the SoLo Funds app can only be used to move funds within the Lend/Borrow services. To use banking products, you must use online banking by Evolve Bank. Personal bank cards, personal loans, mortgages, savings accounts, and IRA investment accounts are issued and used through Evolve Bank.
SoLo Funds does not provide business services directly. However, its clients have access to a wide range of current and savings accounts for legal entities, fund management, asset storage, and lending programs. All these solutions are also provided by the parent company Evolve Bank & Trust on Evolve Bank’s accounts.
Banking features
SoLo Funds only provides a wallet for monetary transactions within a user account. It uses a loan-from-member-to-member format, which means that SoLo Funds acts as an intermediary, but not as a party providing the funds. However, these are small amounts, not mortgages or large consumer loans, such as car loans. Debit cards are issued and serviced by Evolve Bank. The company has announced two additional options, which are accrual of interest for holding money in an internal wallet and life insurance programs.
Technical Support
To understand the operating principle of SoLo Funds and study the list of its services and fees, click the “Help” button in the footer of the website. The FAQs are divided into 5 blocks, which makes it easier to find the necessary information. There is also a window for searching the data base using a search word or phrase. In the Help section there is a form for requesting an answer to your question by email. The maximum response time is 24 hours.
Also, a SoLo Funds client can ask for help through the chat in the mobile application. Live support is available Monday through Friday from 5:00 a.m. to 6:00 p.m. Pacific Time. Both clients and website guests can send a question to help@solofunds.com, and receive an answer within 24 business hours. Technical support is available in English and Spanish.
Social programs of SoLo Funds
All activities of SoLo Funds are aimed at expanding social opportunities for everybody. Using the app, any person, including those belonging to low-income citizens, can apply for a microloan.
SoLo Funds was founded by a group of black American friends, so racial and social equality are important parts of the company’s work. Investors, including celebrities Serena Williams, Kelly Rowland, and Tim Weatherspoon are attracted to this new paradigm of online funding. There are also plans to fully integrate with Ese, an online funding platform for black women.
How to open an account at SoLo Funds
Only US citizens and persons who have lived in the country for at least 10 years and have a Permanent Resident Card can use the SoLo Funds application and its services. Reaching the age of 18 is also a requirement. To register with SoLo Funds, click the “Sign Up” button at the top of the page of its official website.
To access the SoLo Funds app, a current account with Evolve Bank is required. Also, it’s necessary to go through a 3-stage identification procedure. The first stage is AML/KYC (Anti-Money Laundering/Know Your Client) verification. This includes providing personal information, SSN (Social Security Number), and all identification documents required by U.S. law. The second step is to connect an active bank account to your SoLo Funds user account. The final step is to link a debit card with your name on it to your user account. Important: SoLo Funds does not accept credit card payments.
If you are interested in business services, go to the Evolve Bank website and follow the instructions for registering a legal entity. SoLo Funds is not responsible for the terms and conditions of Evolve Bank, although they are managed by the same company.
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FAQs
How does SoLo Funds earn money?
The main income of SoLo Funds is from commissions. You can learn the structure of commissions in detail on the bank's website.
How does SoLo Funds protect its customers?
SoLo Funds uses two-factor authentication, data encryption and other security methods.
Is it possible to check the statistics of expenses?
SoLo Funds provides clients with extended statistics. You can study the detailed information about revenue receipts, expenses, split into different periods of time, etc.
Is it possible to make international payments through SoLo Funds?
Yes. SoLo Funds allows you to make payments between customers in different countries.
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