Dallas Lending App Debuts Unique Loan Insurance: A 'Safety Net' for P2P Lenders

Zirtue, the Dallas-based relationship lending platform, is charting new territory, unveiling a collaboration with Madison, Wisconsin-based TruStage, a financial group with ties to the credit union movement spanning more than 85 years.

Serving more 37 million consumers, TruStage will integrate its newest offering, Payment Guard Insurance, into Zirtue’s platform, the company said. This strategic alliance seeks to bolster security and trust for peer-to-peer lenders and borrowers. TruStage formerly was known as CUNA Mutual Group.

Zirtue said that via the collaboration, the peer-to-peer lending platform will help protect customers by making TruStage’s newest product, Payment Guard Insurance, available.

It is coverage designed to help digital lenders against an unexpected, covered job loss or disability, at no additional cost, Zirtue said.

Dennis Cail

“In today’s environment of high inflation and tighter financial conditions, lenders need to feel confident,” said Dennis Cail, CEO and co-founder of Zirtue, in a statement.

He noted that more borrowers might now lean on “friends, family, and trusted relationships during these financially challenging times.”

Cail emphasized the role of informal lending, pointing out that “friends and family [are] one of the largest banks in the world.” This underscores the importance of such relationships in the financial landscape.

To support these relationship-based lenders, Cail said, “Our goal is to offer them the peace of mind they deserve.” That aspiration has led to Zirtue’s partnership with TruStage, which he believes will “provide an innovative solution that could act as a safety net for our lenders.”

‘A layer of protection against the leading causes for default’

The startup said that unemployment, inflation, and economic uncertainty are causing Americans financial distress, and according to Gallup, three in five Americans say recent price increases have caused financial hardship for their household.

It said that Americans overall are saving less with nearly half of adults (49%) having less savings or no savings compared to a year ago, according to a Bankrate survey.

Those economic conditions make the risk of default on loans high, Zirtue said.

By making Payment Guard Insurance from TruStage available, Zirtue said it pays for and provides insurance for eligible loans, designed to help protect customers against an unexpected, covered job loss or disability.

That helps ensure loans do not go into default, providing security for borrowers and helping reduce the risk for lenders, Zirtue said.

Navigating through economic uncertainties, lenders are often on the lookout for innovative solutions that can minimize default risks.

Danielle Sesko, director of product management at TruStage, said, “Payment Guard helps increase lending capacity for institutions like Zirtue by providing a layer of protection against the leading causes for default.”

Zirtue said that should customers with active loans experience a covered job loss or disability, they can file a claim with TruStage Payment Guard Insurance in a few simple, steps.

More than $50 million in loans processed with Zirtue

Zirtue said it is the world’s first relationship-based, peer-to-peer lending application with direct payments to creditors.

The startup’s platform simplifies loans between friends, family, and trusted relationships by turning informal promises into structured agreements with an automated repayment process.

Zirtue said that corporate partners use the platform as an alternative embedded bill payment solution, allowing customers to request loans from friends or family members so they can pay their bills.

Zirtue has raised $6.6 million in VC funding and more than $50 million in loans for bills and personalized IOUs have been processed on the platform.

In June, the company teamed up with money-transfer heavyweight MoneyGram to give more people around the world a ‘hand up’ in securing loans.

TruStage rebranded in May

In May 2023, TruStage, formerly known as CUNA Mutual Group, announced a unification of its enterprise, business-to-business, and consumer brands under a single banner to better align with market trends.

Stemming from the credit union movement 88 years ago, the company said it continues its dedication to creating a brighter financial future for everyone. The rebranding aims to consolidate all its sub-brands under the TruStage brand.

A recent report from the Wisconsin Examiner indicates that TruStage has faced challenges with union employees. The union represents about 450 employees at the company.