Fintech
UK AI-driven FinTech Abound raises new funding
By Gloria Methri
Today
- Abound
- Credit score
- Credit level
London-based credit technology company Abound has announced a new funding round that could extend to £0.8 billion in total.
The funding round, a mix of debt and equity, will help Abound expand into prime lending in the UK and launch Render, its proprietary AI credit technology platform, globally.
Abound has made over £300 million in loans to date. The new financing includes a multi-year asset-backed debt financing agreement (backed by lending) from existing lender Citi. At the same time, Silicon Valley-based GSR Ventures led the Series B equity round component.
Abound’s AI technology, Render, scans customers’ banking transaction data to understand each person’s unique financial situation and determine how much they can afford to repay each month.
It is estimated that over 15 million people in the UK are struggling to get loans due to unexpected costs, with many with poor credit scores being forced to accept unacceptably high interest rates. Abound aims to change the way credit decisions are made globally so that more people can access loans at rates they can afford to repay, driving financial inclusion.
Gerald Chappell, CEO and co-founder of Abound and Render said: “A new investment of this size, coming from a mix of venture capital funds and global banks, is a testament to the demand and success of Abound and Render. This demonstrates the confidence investors have in our business to continue growing and in our AI-powered technology to continue transforming consumer lending.”
Michelle He, co-founder of Abound and Render, said: “Open Banking has enabled consumers to take ownership of their data to obtain more personalized financial products. With Abound and Render we are showing that this can often mean they can access cheaper rates. We firmly believe this is the future of lending.
The credit scoring system is dated and omits crucial pieces of the puzzle, such as whether someone can afford to repay the loan. For those who are ready to embrace Open Banking, Render can offer more accurate controls and, therefore, reduce costs and risks.
Quite simply, the technology works, and that’s why we continue to grow at this rate and why our investors continue to support us.”