Canadian FinTech firm QuadFi has entered into an agreement for a financing facility of up to $100m with private credit manager Crayhill Capital Management.
QuadFi has developed an underwriting model that considers a customer’s future income and career trajectory. This differs from traditional risk rating models, the firm claims, which normally rely on the historical behaviour and income of customers.
The company added that the model is especially useful for customers with thin credit history but bright prospects such as newcomers and younger demographic groups. QuadFi also offers immigrants the benefit of utilising their home country financial history even after leaving.
According to QuadFi, the facility will be used to provide personal loans to people with limited credit history, but with a strong current income and a bright financial outlook, including young people and immigrants.
QuadFi co-founder and CEO Manny Nikjoo said, “Canada welcomes 400,000 new immigrants every year – and they deserve access to fair and affordable financial products. Our model incorporates credit data from their home countries, alternative data and open banking to provide accurate underwriting and deliver financial inclusion today. This partnership allows us to take a big step toward achieving our long-term pursuit of fostering financial inclusion and helping our customers, who are young, ambitious and educated, achieve the financial access they deserve.
“Crayhill understands our objectives, and now we have the runway to accelerate our growth, which will have benefits for our customers, investors, and communities. Our data-driven approach to lending was created to replace the outdated financial practices that currently lead to inequality of access to financial products for all groups.”
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