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Fintern, a UK startup aiming to shake up the market for low-value consumers loans with technology that bypasses credit scores in making lending decisions, has secured £8 million of capital in its latest funding round.
The investment, which brings the company’s total capital raised to £40 million and will help drive expansion plans, was led by Hambro Perks, an international investment firm focused on private investing.
Founded by a team from McKinsey, EY, Bank of America Merrill Lynch, HSBC and XiaoMi, Fintern skips traditional credit scoring techniques by applying AI, Open Banking and transparent affordability testing to make lending decisions.
Since opening its doors for business in March last year, the company has processed more than 50,000 loan applications, 60% of whom would not have been approved had they been assessed by traditional methods.
Fintern aims to build a £1 billion loan book in the UK over the next five years, whilst using the fresh capital to launch its first B2B partnerships.
Gerald Chappell, CEO and Co-founder at Fintern, says: “We are confident about the next stage of our growth and remain committed to making consumer finance accessible and affordable to people who deserve it and have thus far been underserved.”
Financial Services
