London startup raises £32m to expand access to affordable loans in UK
A London-based startup has announced that it has raised £32m in equity and debt funding.
The equity funding for Fintern comes from a variety of angles, including several fintech founders and business leaders.
Debt financing will be provided by Hamburg-based fintech financier Varengold Bank and will provide the company with the capital necessary to take the first step in its mission to provide £1bn of consumer loans by 2025.
Research shows that 15 million people across the UK struggle to borrow for unexpected costs with many of them forced to turn to payday loans and other high-cost lenders.
With this new funding, Fintern will be able to open up access to affordable loans, helping many avoid often unshakable debt spirals.
Fintern will take a more holistic approach by looking at each customer’s entire financial situation, including incomings, outgoings, current repayments and repayment history by leveraging open banking and AI to analyse their customers’ transaction data, allowing them to open up affordable lending to a much wider audience in the process.
Gerald Chappell, CEO and co-founder, commented: “This fundraising puts us in a strong position to deliver on our mission to increase access to affordable personal credit. Our distinctive data driven approach to lending allows us to bypass credit scores, increase approval rates and lower APRs.
“We’re delighted to be partnering with Varengold Bank on the funding of our loan book, benefiting from their experience and commitment to Fintech lending innovation.”
Alison Harwood, head of Varengold’s London Branch, added: “We’re thrilled to be partnering with Fintern to provide wider access to affordable borrowing in the UK. This is another example of Varengold’s wider mission to support fintechs across Europe in providing innovative, customer-centric lending products.
“Both Varengold and Fintern are passionate about changing the consumer lending landscape in the UK and we’re excited to be working together towards that goal.”
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