Fintech
British fintech raises £800m for artificial intelligence that determines how much money you can borrow
An AI scanning your banking transaction data involves a level of invasiveness that I find difficult to accept, let alone my transaction information.
But the technology could bring some merit, at least in the world of credit.
Enter Abundance. The London-based startup has just raised £800 million for its lending platform which it uses TO THE to determine loan amounts.
Dubbed Render, Abound’s AI analyzes customers’ comprehensive banking transaction data (from income to spending details) to understand their individual financial situation, unlike traditional credit checks. Render then calculates the amount of money customers are able to repay each month.
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According to the company, using its technology results in 75% fewer defaults compared to industry standards. For this reason, Abound can offer lower interest rates to consumers with an APR (annual percentage rate) of 24.8% for loans between £1,000 and £10,000, repayable for up to five years.
THE to boot It also offers its AI credit platform to banks and credit unions across Europe.
One of the UK’s fastest growing fintech companies, Abound achieved profitability three years after its founding in 2020. With the new capital, the company plans to grow both B2C and B2B markets and expand globally.
The funding round – one of the largest in Europe this year – is a mix of debt financing and a Series B equity round, led by GSR Ventures. The investment brings Abound’s total funding to £1.3 billion.
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