Lendbuzz, an AI-powered FinTech company revolutionising the automotive finance market, has recently made headlines.
The Boston-based firm has successfully closed a $125m credit facility deal with Royal Bank of Canada (RBC). This substantial cash injection is set to bolster the company’s loan origination growth, backed by the additional warehouse capacity.
At the heart of Lendbuzz’s operations lies a proprietary, AI-based auto finance platform. It empowers the company to efficiently evaluate the creditworthiness of a wide range of consumers. Lendbuzz caters to individuals with varying credit scores, from those with good scores to those with minimal or even no credit history. In the US, this underserved segment includes nearly 100 million people, including those with near-prime scores. The Lendbuzz platform has proven to be an innovative solution to address the historical shortcomings of the traditional credit system.
The freshly raised funds will enable Lendbuzz to further enhance its platform, thereby increasing its borrowing capacity. Ultimately, the aim is to serve an even broader spectrum of borrowers and continue the company’s growth trajectory.
George Sclavos, CFO of Lendbuzz, expressed his excitement about the partnership with RBC. “Our ability to grow originations with credit worthy customers in the midst of tremendous shifts in both the automotive retail and financial industries is a testament to our continued focus on exceptional underwriting and credit decisioning. We look forward to continuing to grow the relationship,” he said.
Lendbuzz, established in 2015, has its roots in alternative data and machine learning algorithms. Through its partnerships with auto dealerships, Lendbuzz not only offers attractive financing solutions to consumers but also enables dealers to cater to a more diverse customer base.
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