Fintern, a UK startup aiming to shake up the market for low-value consumers loans with the launch of credit technology that bypasses credit scores in making lending decisions, has raised £32 million in equity and debt funding.
The equity funding comes from a host of unnamed angels, including several fintech founders, while debt financing will be provided by Hamburg-based Varengold Bank.
Founded by a team from McKinsey, EY, Bank of America Merrill Lynch, HSBC and XiaoMi, Fintern skips traditional credit scoring techniques by applying AI, Open Banking and transparent affordability testing to make lending decisions.
The UK consumer lending market is worth £160bn, yet over 15 million people in the UK are denied access to affordable loans, says Gerald Chappell, CEO and co-founder of Fintern and a former partner at McKinsey.
The firm opened its doors last month with a 20,000-strong waitlist to plough through. Offering loans of between £500 and £5000 for durations of up the three years, Fintern charges interest at an APR of 18.8%.
Says Chappell: "This fundraising puts Fintern in a strong position to deliver on our mission to increase access to affordable personal credit."