Fintech raises £2.3 million to reshape credit scoring

A Newcastle-based fintech has raised £2.3 million and secured regulatory approval as it prepares to scale technology designed to challenge traditional approaches to credit scoring.

Noggin HQ has completed an oversubscribed seed round as it launches its alternative credit scoring technology to UK lenders after gaining credit referencing authorisation from the Financial Conduct Authority (FCA).

The approval allows the company to provide cashflow-based credit data to FCA-authorised lenders, making it one of only a handful of businesses to become a UK credit reference agency during the past decade.

Founded by childhood friends Evangeline Atkinson and Laura Mills, Noggin was inspired by their own experiences of being declined for credit despite working full-time and regularly paying rent and bills.

The company uses permissioned banking transaction data to help lenders identify potentially creditworthy customers whose circumstances may not be fully reflected by conventional credit records, including those with thin credit files, limited borrowing histories or time spent living abroad.

With 3.2 million UK adults reportedly declined credit in the two years to May 2024, Noggin aims to provide a broader picture of affordability and help more consumers access appropriate credit.

The latest investment was led by Blackfinch Ventures, with continued backing from Oxford Capital and Bethnal Green Ventures, alongside angel investors including former TotallyMoney chief executive Alastair Douglas.

Evangeline and Laura say the funding will support Noggin’s transition from successful pilot programmes into wider market adoption, enabling the business to roll out its technology to more FCA-authorised lenders and establish its cashflow-based data within mainstream credit decision-making.

The raise will also support the company as it scales its operations and builds on the regulatory infrastructure required to operate as a credit reference agency.

It follows £710,000 of pre-seed funding previously secured by the business.

Evangeline said: ​​“The UK credit market has changed. 

“Consumers earn, spend and borrow in more complex ways than ever before, but much of the credit referencing infrastructure still reflects an older economy. 

“Now that we’re an authorised credit reference agency, we’re energised to be supporting more nuanced credit checks for the consumers the system has historically underserved.​​”

Alastair added: “Credit scoring is broken because it only looks backwards, judging people on a patchy record of their past, held in a system built to keep data in the hands of companies, not the people it belongs to. 

“Open banking turns that on its head: real-time data that shows what someone can actually afford today, making decisions quicker, fairer and more accurate. 

“That’s why I’ve backed Noggin.

“Eva and Laura are proving you can build a great business and make credit work better for lenders and customers at the same time.”

Hugh Bartlett, principal at Blackfinch Ventures, added: “At Blackfinch Ventures, we look for businesses using technology to solve real, persistent problems, and Noggin is a strong example of that. 

“Its approach helps credit assessment evolve beyond traditional models by using richer, more up-to-date data to build a clearer picture of borrowers. 

“We believe that Noggin’s solution can help lenders make more informed decisions while widening access for people who may be overlooked by existing approaches.”

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