Lending start-up Fintern raises £32m in equity and debt funding
London-based start-up Fintern has raised £32 million in equity and debt funding from Varengold Bank and a collection of angel investors.
The new round provides Fintern with the capital necessary “to take the first step”, it says. The start-up aims to provide £1 billion of consumer loans by 2025.
Fintern says it takes “a more holistic approach” to credit scoring and lending by looking at each customer’s incomings, outgoings, current repayments and repayment history.
It offers loans of £500-5,000 for durations of up to three years. The firm uses open banking and AI to analyse their customer’s transaction data. It says this can “open up affordable loans” and stops people from slipping into “unshakeable debt spirals”.
“This fundraising puts Fintern in a strong position to deliver on our mission to increase access to affordable personal credit,” says Gerald Chappell, Fintern CEO.
“Our distinctive data driven approach to lending allows us to bypass credit scores, increase approval rates and lower APRs.”
He adds Fintern will benefit from Varengold Bank’s “deep experience and commitment to fintech lending innovation”.
Varengold Bank is a German institution founded in 1995 and granted a full banking licence in 2013. Its core business focuses on marketplace and commercial banking.
“Both Varengold and Fintern are passionate about changing the consumer lending landscape in the UK,” says Alison Harwood, head of Varengold’s London branch.