Fintern raises £32m to expand access to affordable loans in the UK

The fintech leverages open banking and AI to build a full picture of each customer’s entire financial situation

UK-based startup Fintern has raised £32 million in equity and debt funding following its public launch last month.

The equity funding comes from a variety of angels, including several fintech founders and business leaders. Debt financing will be provided by Germany-based Varengold Bank.

This provides Fintern with the capital necessary to take the first step in its mission to provide £1 billion of consumer loans by 2025.

Fintern is targeting an estimated UK customer base of 15 million people who turn to payday and other high-cost lenders when unexpected costs arise.

The fintech leverages open banking and AI to build a full picture of each customer’s entire financial situation, including incomings, outgoings, current repayments and repayment history, so that it can open up affordable lending to a much wider audience.

Fintern operates an app, available on both iOS and Android, that connects to a customer’s bank account. From there, its AI takes over to assess affordability and decide whether or not to offer a loan of between £500 and £5,000 for durations of up to three years with a variable APR of 18.8%.

Gerald Chappell, chief executive officer and co-founder of Fintern, comments: “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. We’re delighted to be partnering with Varengold Bank on the funding of our loan book, benefiting from their deep experience and commitment to Fintech lending innovation.”

Alison Harwood, head of Varengold’s London branch, adds: “We’re thrilled to be partnering with Fintern to provide wider access to affordable borrowing in the UK. This is another example of Varengold’s wider mission to support fintechs across Europe in providing innovative, customer-centric lending products. 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.”]

Image: Fintern

Mark Dugdale