AI-driven consumer lending startup Abound secured £500M ($601M) in debt and equity finance to expand its "open banking" approach to loan deals.
Rather than using traditional credit scores, the U.K.-based startup relies on data gathered from big bank APIs, as well as AI, to generate profiles of each customer.
- Abound, previously
known as Fintern.AI, uses banking transaction data to build AI risk and
lending profiles, known as "financial X-rays."
- The company claims this technique allows it to offer lower interest rates than traditional lenders who use only credit scores.
- "We see ourselves as going beyond credit scoring," said CEO Gerald Chappell, who co-founded Abound in 2020.
- The
firm's latest debt financing comes from U.S. bank Citi and Waterfall
Asset Management clients. Equity investors include GSR Ventures, K3
Ventures, and Hambro Perks.
- The funding will go toward technology investments, loan financing, and drawing in more customers to its platform.
