Bloom Credit, a financial wellness platform, has received $3.87m in a seed round led by Resolute Ventures.
Other contributions to the round came from Kindred Ventures, Slow Ventures and 500 Startups FinTech Fund.
The company uses credit analysis, AI, machine learning, and human interventions to provide consumers with credit-building insights to help strengthen their credit health and financial wellbeing.
It works when a customer applies for a loan and Bloom Credit will provide them with a roadmap to improve their financial capacity. Achieving the goal takes on average between one and six months and helps them get better loan offers or product recommendations.
Bloom Credit uses traditional credit bureau data and alternative data sets to evaluate the credit history of consumers and future financial goals.
Financial institutions can also partner with Bloom Credit to provide their customers with the solution directly, improving custeomr relationships.
Bloom Credit co-founder and CEO Matt Harris said, “We believe all consumers are inherently creditworthy but may simply need help to earn the credit they need and deserve. And while lenders have the capacity to lend, we also recognize they receive too many non-qualified applicants and simply must say “No” or price at rates that don’t make sense for the customer.
“With Bloom Credit, we see the opportunity for a new beginning. We’re working to change what can be a very negative borrower-lender experience and seed a healthy relationship dynamic from the start.”
Earlier in the year, Resolute Ventures took part in the $100m Series D of e-commerce fraud detection software developer Signifyd. The company combines machine learning algorithms, behaviour technology and advanced data science research to help identify fraudulent orders for more than 10,000 retailers globally.
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