Finexos, a FinTech aimed at improving access to lending without a credit score, has received a $695,000 funding round, which was led by Growth Capital Ventures.
The round was oversubscribed by 40% and will supply Finexos with the funds to drive its market entry strategy. The company will roll out its solution to several key pilot partners looking to accurately evaluate credit worthiness.
Founded in 2018, Finexos has built a technology platform that combines open banking with AI and machine learning to measure financial capability without needing a credit score.
It states that where a traditional credit score uses around 12 pieces of information, the Finexos solution uses over 220 pieces of data to give an accurate assessment of how a consumer or SME manages its cash flow.
Growth Capital Ventures co-founder and CEO Norm Peterson said, ?Over 12 million people in the UK alone are in the high-interest, revolving credit trap as a result of legacy credit scoring. Millions of people are paying to high interest rates due to a low legacy credit score even though we now have access to the information to readily prove that such a low credit score can be entirely unjustified.
?With the Finexos solution developed and ready to take to the market, the platform is set to transform credit scoring, increasing loan origination while simultaneously reducing default rates for lenders.span>
Finexos founder Mark Fisher added, ?We are moving at pace and seeing significant traction with customers, utilising technology to provide better outcomes for consumers and lenders that can, overtime, replace the outdated and inefficient way credit scoring works currently.
?We have a real opportunity to help consumers meet the cost-of-living crisis by improving financial inclusion and also protecting the more vulnerable.span>
Earlier this year, fellow FinTech company looking to help improve access to credit, Pillar, raised funds. The company raised ?15.6m to tackle credit access problems experienced by immigrants.
Copyright ? 2022 FinTech Global
