If you have someone you could borrow $500 from you are not the target market for this app.
What is the risk you are referring to? On the surface it sounds like a decent app for someone who lacks financial skills.
Making automatic loans sound very similar to sms loans, which is a common cause for people falling into incurable debt. It mean less insight and less responsibility, targeted to those who lack financial skills. That could make things better in theory, or things much much worse if the incentives are to get people to take unnecessary and expensive loans.
They say they aren't loans, but credits. It's not clear that you actually become indebted to them.
If its only credit and this work, banks really have something to learn from this. Having customers pay you to restrict withdraws from the bank account is one those ideas that sound crazy, but sure, I can see some direct value from that kind of service. Not one I would personally pay for.