Challenger bank Fiinu passes £500k crowdfunding goal

Fiinu, a new challenger bank, has passed its £500,000 target for its crowdfunding campaign on Seedrs.

The bank has raised up to £536,245 from around 279 backers and represents the issuing of 7.12 per cent of its equity, so far. This crowdfunding campaign is being raised at the pre-money valuation of $7m.

FinTech initially reported on the sale two weeks ago, with the company having pulled in £236,000 from 200 backers.

UK-based Fiinu, which will launch at the start of next year, hopes to improve the global overdraft market through the implementation of machine learning. Its Bank Independent Overdraft service is a current account with an overdraft extension and aims to support consumers whose accounts are overdrawn annually. Through this, the bank hopes to help its users save money and improve their credit scores.

The platform utilises AI, machine learning, and data made available through PSD2 and open banking to help better assess short-term debtors. When a consumer applies for credit, Fiinu calculates eligibility and fair prices based on hundreds or rule and data such as profiling, fraud and social data.

This crowdfunding campaign is part of a three-year initiative to raise £30m. The bank is looking to accept their first UK customers over the next 12 months, and is currently in the process of acquiring a UK banking licence.

Challenger banks have had a rather active month for funding, with a range having completed deals. Last week, European mobile bank N26 picked up €110m to support its US expansion, while European challenger bank Margo nabbed €6.4m to bolster its technology.

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