Credit evaluation fintech Finexos has raised £695,000 of funding to push for market launch.
Growth Capital Ventures led the investment in UK-based Finexos, which was founded in 2018. The round was oversubscribed by almost 40% from the initial target.
The funding will support Finexos’s market entry strategy as the fintech rolls out its solution to several key pilot partners looking for a more accurate way of evaluating credit worthiness.
Finexos uses open banking, artificial intelligence and machine learning to measure financial capability without the need for a credit score
Its solution uses more than 220 pieces of data to give an assessment of how a consumer or business manages cashflow, rather than the usual 12 assessed during the traditional credit scoring process.
Finexos believes that its solution will help the many people currently excluded from mainstream credit due to the way scoring is traditionally carried out.
Mark Fisher (pictured, left), the fintech’s founder, explained: “Finexos can deliver high-impact outcomes for underserved consumers and SMEs and will increase loans originated, at a lower default rate, for providers of credit.”
“Finexos combines advanced technologies, commercial acumen and a strong business and operating model to solve an important social and financial issue.”
“We are moving at pace and seeing significant traction with customers, utilising technology to provide better outcomes for consumers and lenders that can, overtime, replace the outdated and inefficient way credit scoring works currently.”
Norm Peterson (pictured, right), co-founder and chief executive officer at Growth Capital Ventures, commented: “Over 12 million people in the UK alone are in the high-interest, revolving credit trap as a result of legacy credit scoring. Millions of people are paying to high interest rates due to a low legacy credit score—even though we now have access to the information to readily prove that such a low credit score can be entirely unjustified.”
“With the Finexos solution developed and ready to take to the market, the platform is set to transform credit scoring, increasing loan origination while simultaneously reducing default rates for lenders.”