London’s consumer loans provider Fintern has raised £32 million in equity and debt financing from a variety of undisclosed angel investors. Debt financing will be provided by Hamburg-based financier Varengold Bank.
This round of funding comes fresh off the back of Fintern’s public launch just last month, and is slated to propel the company’s goal of providing £1 billion in consumer loans by 2025.
“This is another example of Varengold’s wider mission to support fintechs across Europe in providing innovative, customer-centric lending products,” comments Varengold’s London Branch head Alison Harwood. “Both Varengold and Fintern are passionate about changing the consumer lending landscape in the UK and we’re excited to be working together towards that goal.”
Traditionally, lenders will rely solely on an individual’s credit score to make a determination on whether to approve or deny an application. Where Fintern differentiates is through using an artificial intelligence algorithm to examine an applicant’s total financial situation, incoming, outgoing, current repayments, and repayment history to make a decision. Through this process, Fintern also reports that it’s able to make affordable lending available to a much wider audience when compared to traditional lending methods.
Fintern was co-founded in 2020 by former KPMG, Ernst & Young, and McKinsey executive Gerald Chappell, and Ernst & Young executive Dr. Michelle He and is focusing on loads ranging from £500 to £5000 for terms up to three years with a variable APR of 18.8%.
“This fundraising puts Fintern in a strong position to deliver on our mission to increase access to affordable personal credit. Our distinctive data-driven approach to lending allows us to bypass credit scores, increase approval rates, and lower APRs,” adds Fintern CEO Chappell.