![UK fintech raises £800M for AI that determines how much money you can borrow](https://cialisoral.com/wp-content/uploads/2024/05/1715108480_UK-fintech-raises-800M-for-AI-that-determines-how-much.jpeg)
An AI scanning your bank transaction data entails a level of invasiveness that I find difficult to accept — let alone embrace for my own transaction information.
But the technology could bring merits, at least in the lending world.
Enter Abound. The London-based startup has just raised £800mn for its lending platform that uses AI to determine loan amounts.
Dubbed Render, Abound’s AI analyses customers’ full bank transaction data (from income to spending details) to understand their individual financial situation — unlike traditional credit checks. Render then calculates the amount of money customers are able to pay back each month.
According to the company, the use of its technology results in 75% fewer defaults compared to industry standards. For this reason, Abound can offer lower interest rates to consumers with a 24.8% APR (annual percentage rate) for loans between £1,000 and £10,000, repayable for up to five years.
The startup is also offering its AI credit platform to banks and lenders across Europe.
One of the UK’s fastest-growing fintechs, Abound reached profitability three years after being founded in 2020. With the fresh capital, the company plans to grow both its B2C and B2B market and expand globally.
The funding round — one of Europe’s largest so far this year — is a mix of debt financing and a Series B equity round, led by GSR Ventures. The investment brings Abound’s total funding to £1.3bn.
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