Fintern, an online loans platform, has scored £32m in a mixture of equity and debt funding.
The equity was supplied by a group of unnamed angel investors, which included FinTech founders and busines leaders.
Germany-based FinTech financer Varengold Bank supplied the debt line. It is not clear how much of the £32m was made up of debt.
With the fresh capital, Fintern hopes it can continue its development and meet its goal of providing £1bn in consumer loans by 2025.
Unlike most lenders that just use a credit score to make a decision on a loan, Fintern claims to take a more holistic approach. It looks into each customer’s entire financial situation, including incomings, outgoings, current repayments and repayment history.
It does this by leveraging open banking and AI to analyse customer transaction data and finds them a loan they can afford. Loans are available between £500 and £5,000.
Fintern CEO and co-founder Gerald Chappell said, “This fundraising puts Fintern in a strong position to deliver on our mission to increase access to affordable personal credit. Our distinctive data driven approach to lending allows us to bypass credit scores, increase approval rates and lower APRs. We’re delighted to be partnering with Varengold Bank on the funding of our loan book, benefiting from their deep experience and commitment to Fintech lending innovation.”
Alison Harwood, head of Varengold’s London Branch, said “We’re thrilled to be partnering with Fintern to provide wider access to affordable borrowing in the UK.
“This is another example of Varengold’s wider mission to support FinTechs across Europe in providing innovative, customer-centric lending products. Both Varengold and Fintern are passionate about changing the consumer lending landscape in the UK and we’re excited to be working together towards that goal.”
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