Fintern, which is making loans more affordable, has raised £8m in a capital injection to support its international expansion.
This fresh equity will help Fintern bolster its presence in the UK, hire more staff and launch its first B2B partnerships.
Hambro Perks, an international private investment firm, acted as the lead investor. Contributions also came from Varengold Bank and other high-net-worth individuals.
Fintern’s goal is to make it easier for people to access affordable credit.
It claims that despite masses of data being available to lenders, most still base their decisions on a credit scoring system from the 1950s. As a result, more than 15 million people in the UK have unnecessarily high borrowing costs and unsuitable credit products.
It launched its debut consumer lending product in March 2021, and since then over 50,000 loan applications have been processed. The company leverages open banking to understand an applicant’s financial situation.
Fintern COO and co-founder Michelle He said, “I know first-hand what it means to be denied access to vital financial support. When I first moved to the UK, I was unable to get a loan despite my full-time employment. It was incredibly frustrating and exposed many of the issues within the current lending system.
“After working within this system with Gerald, we decided we were in a unique position to change things for the better. As we emerge from the pandemic, Fintern is now more relevant than ever for those who seek financial stability and support.
“We’ve achieved a lot, but there is more to be done, and I am grateful to be part of a team who work tirelessly to make our product even better.”
Following the close of the round, the company has raised a total of £40m in funding, to date.
Osborne Clarke advised Fintern on the fundraise.
Copyright © 2022 FinTech Global