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UK AI-led FinTech Abound raises fresh funding

By Gloria Methri

May 13, 2024

  • Abound
  • Credit Score
  • Credit Scoring
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Abound, Lending, Credit Technology, AI, UKLondon-based credit technology company Abound has announced a new financing round that could extend up to £0.8 billion in aggregate.

The funding round, a mix of debt and equity, will help Abound to expand into prime lending in the UK and to roll out Render, its proprietary AI credit technology platform, globally.

Abound has issued over £300 million in loans to date. The new funding includes a multi-year asset-backed debt financing arrangement (backed by loan originations) from existing financier Citi. At the same time, Silicon Valley-based GSR Ventures led the Series B equity round component.

Abound’s AI technology, Render, scans customers’ bank transaction data to understand each person’s unique financial situation and determine how much they can afford to repay each month.

It is estimated that over 15 million people in the UK struggle to borrow for unexpected costs, with many with poor credit scores having to accept unacceptably high interest rates. Abound aims to change the way that credit decisions are made globally so that more people can access loans at rates they can afford to repay, driving financial inclusion.

Gerald Chappell, CEO and co-founder of Abound and Render said, “A new investment of this size, which comes from a mixture of VC funds and global banks, is a testament to the demand for and success of Abound and Render. It speaks to the confidence investors have in our business to keep growing and in our AI-powered technology to continue transforming consumer credit.”

Michelle He, the co-founder of Abound and Render, said, “Open Banking has empowered consumers to take ownership of their data to get more personalised financial products. With Abound and Render, we’re showing that this can often mean they can access cheaper rates. We strongly believe that this is the future of lending.

The Credit scoring system is dated and omits crucial pieces of the puzzle, like whether someone can afford to repay the loan. For those ready to embrace Open Banking, Render can offer them more accurate checks and, therefore, lower costs and risk.

Quite simply, the technology works, and that is why we continue to grow at such a pace and why our investors continue to back us.”

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