Generation Z credit card provider Deserve has closed a $12m funding round led by Accel.
Investors contributing to the round included Aspect Ventures, Pelion Ventures, Mission Holdings, Alumni Venture Group and GDP Venture.
The company is a credit card producer for Generation Z (18 – 29-year-olds), utilising machine learning to help decide a credit score and ensure people are offered fair credit products. The platform aims to help consumers that do not have a credit card get access to one, by using algorithms to predict credit potential, based on attributes including education, current financial health, and future employability.
Deserve offers users one per cent cashback on all purchases, no annual fees, no security deposits, no fees on foreign transactions and for international students an SSN is not needed. When the users build up their credit scores, they can upgrade their cards to get better benefits including extra cashback on purchases.
Accel Sameer Gandhi said, ?Access to credit and financial literacy are the building blocks of financial success and stability in the United States. We believe Deserve application of machine learning is a big opportunity to evolve past the antiquated FICO system in a technologically sophisticated way.p>
This round of equity follows a $7.1m Series B round picked up by the company last year.
Earlier this week, credit card company FS Card closed a $150m financing round to support its growth. Last month saw credit card platform Petal raise a $3.6m seed funding round, which had contributions from a range of investors including Brooklyn Bridge Ventures and Afore Capital.
Earlier this week Accel and General Catalyst co-led the $28m Series B round of insurance fraud protection platform Shift Technology. The capital injection will be used to help the company to open new offices in New York and Tokyo.
Other companies currently in Accel portfolio include gift card marketplace Raise, P2P lending platform Funding Circle and auto insurance marketplace Zebra.
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