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Fintern announces the closing of an £8m Series A funding round

By Joy Dumasia

February 09, 2022

  • Credit Scoring
  • Digital Lending
  • Digital Loans

Fintern has secured £8 million of new capital in its latest funding round. The investment, which brings the Company’s total capital raised to £40 million and will help drive expansion plans, was led by Hambro Perks, an international investment firm focused on private investing. The investment round also included an equity investment from Fintern’s primary debt provider, Varengold Bank, and other high-net-worth individuals. Osborne Clarke LLP advised Fintern on the fundraising. The proceeds from the investment will be used to bolster Fintern’s presence in the UK, build out its team and launch its first B2B partnerships. 

Since launching its consumer lending product in March 2021, Fintern processed more than 50,000 loan applications and proved that this affordable alternative works. Fintern uses Open Banking to get an accurate picture of each applicant’s unique financial situation. By combining this data with several other sources, Fintern can base their lending decisions on what someone can afford to borrow, rather than relying on an incomplete snapshot of the past. 

Fintern has demonstrated its ability to lend with credit loss rates of less than half those that the traditional credit scoring system would have otherwise predicted. This impressive performance is achieved while expanding access to affordable credit: over 60% of Fintern’s customers would not have been approved for their loans had they been assessed by traditional methods. 

George Davies, Partner at Hambro Perks, said: “We are excited to support Fintern and their mission to use Open Banking technology to drive fair finance for consumers. Not only does Fintern provide fair lending products for consumers in a way that is crucial and missing in our society, but they have built a platform that is truly effective and unparalleled in the market. We are enthusiastic about Fintern’s innovative product and are confident that its technology has the opportunity to change the industry dynamics for the better.” 

Gerald Chappell, CEO and Co-Founder at Fintern, said: “Today marks an important milestone for Fintern in our mission to make consumer lending accessible and fair. Our next-generation consumer credit technology is delivering significantly improved outcomes for consumers, and I’m excited to see this impact through our own lending and through the technology we provide to our partners. I am very pleased that our investors and partners have recognised the strength of our product and loan performance. We are confident about the next stage of our growth and remain committed to making consumer finance accessible and affordable to people who deserve it and have thus far been underserved.” 

Michelle He, COO and Co-Founder at Fintern, 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.” 

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