Fintern is now Abound 🎉. You can read more about this here
Fintern, the fast-growing UK credit technology platform, has secured £8 million of new capital in its latest funding round. The investment, which brings the Company's total capital raised to £40 million and will help drive expansion plans, was led by Hambro Perks, an international investment firm focused on private investing. The investment round also included an equity investment from Fintern's primary debt provider, Varengold Bank, and other high-net-worth individuals. Osborne Clarke LLP advised Fintern on the fundraising. The proceeds from the investment will be used to bolster Fintern's presence in the UK, build out its team and launch its first B2B partnerships.
Fintern's mission is to expand access to affordable credit. There is more data available today than ever before, yet most lenders still base their decisions on a credit scoring system developed in the 1950s. This leaves over 15 million people in the UK facing unnecessarily high borrowing costs and unsuitable credit products. Since launching its consumer lending product in March 2021, Fintern processed more than 50,000 loan applications and proved that this affordable alternative works. Fintern uses Open Banking to get a true picture of each applicant's unique financial situation. By combining this data with several other sources, Fintern can base their lending decisions on what someone can afford to borrow, rather than relying on an incomplete snapshot of the past.
Fintern has demonstrated their ability to lend with credit loss rates of less than half those that the traditional credit scoring system would have otherwise predicted. This impressive performance is achieved while expanding access to affordable credit: over 60% of Fintern's customers would not have been approved for their loans had they been assessed by traditional methods.
Fintern's consumer lending business has also served as the first client of the Company's B2B credit analytics and underwriting software. Part of the capital raised will be used to build out the B2B team to integrate with the growing pipeline of external clients internationally.
George Davies, Partner at Hambro Perks, said: "We are excited to support Fintern and their mission to use Open Banking technology to drive fair finance for consumers. Not only does Fintern provide fair lending products for consumers in a way that is crucial and missing in our society, but they have built a platform that is truly effective and unparalleled in the market. We are enthusiastic about Fintern's innovative product and are confident that its technology has the opportunity to change the industry dynamics for the better."
Fintern's solution offers the flexibility to manage loan repayments around customers' personal needs with lower interest rates than the market. On average, customers who choose to consolidate their debts with Fintern save £1,125 in interest costs compared to traditional lenders. Fintern aims to build a £1 billion loan book in the UK over the next 5 years, whilst using the experience gained from their own lending business to strengthen their B2B proposition.
Gerald Chappell, CEO and Co-founder at Fintern, said: "Today marks an important milestone for Fintern in our mission to make consumer lending accessible and fair. Our next-generation consumer credit technology is delivering significantly improved outcomes for consumers, and I'm excited to see this impact through our own lending, and through the technology, we provide to our partners. I am very pleased that our investors and partners have recognised the strength of our product and loan performance. We are confident about the next stage of our growth and remain committed to making consumer finance accessible and affordable to people who deserve it and have thus far been underserved."
Michelle He, COO and Co-founder at Fintern, said: "I know first-hand what it means to be denied access to vital financial support. When I first moved to the UK, I was unable to get a loan despite my full-time employment. It was incredibly frustrating and exposed many of the issues within the current lending system. After working within this system with Gerald, we decided we were in a unique position to change things for the better. As we emerge from the pandemic, Fintern is now more relevant than ever for those who seek financial stability and support. We've achieved a lot, but there is more to be done, and I am grateful to be part of a team who works tirelessly to make our product even better."
We're on a mission to make affordable loans available to more people. Some lenders only look at your credit score. We look at all of you – what you earn, how you spend, and what's left at the end. And we make sure it's easy, open and affordable – every step of the way. So, whether you're borrowing for the first time, consolidating debts, or building up to something big – we'll help you get there.
We use Open Banking and AI to make better lending decisions. Better decisions mean better rates. And we're the best rate a customer sees 49% of the time.
Fintern was founded in 2020 with a team from McKinsey, EY, Bank of America Merrill Lynch, HSBC and XiaoMi.
We're authorised and regulated by the Financial Conduct Authority, firm reference number 929244, a member of Cifas (the UK's leading anti-fraud association) and registered with the UK Information Commissioner's Office in compliance with the Data Protection Regulations 2018.
About Hambro Perks:
Hambro Perks is a London-headquartered international investment firm focused on private investing. It partners with founders and entrepreneurs to support growth businesses at all stages of the investment cycle.
Hambro Perks has specialised and dedicated investment teams, working across a number of funds. In addition to their flagship Venture, EIS and co-investment funds, Hambro Perks offers a number of specialist differentiated investment strategies, including Hambro Perks Environmental Technology, Special Situations, and Access, which invests in venture secondaries. It has partnered with some of the most pioneering and ambitious companies in the UK and Europe, including Gelesis, Muzmatch, What3Words, PrimaryBid, Moneybox, and Vedanta Bioscience.