But it s this exploitative experience that makes banks vulnerable to fintech startups like LendUp that are willing to undercut them and make up margin with software efficiency.

That s an impressive feat during a rough season for late-stage fundraising.

LendUp will apply the cash toward scaling out its L Card, a credit card with no hidden fees and a flexible payback schedule.

It also sports modern features through its companion smartphone app, which lets users instantly halt charges in case of loss or theft, and a financial health meter that clearly shows how much credit the customer has left to spend.

LendUp is already signing up thousands of accounts per month, even though it hasn t been ready to aggressively market itself just yet.

Historically, there weren t many alternatives.

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