AI-powered credit technology firm Abound has secured up to 拢250m in financing for consumer loans from Deutsche Bank.
The London FinTech says the deal – which takes Abound鈥檚 total lending capacity to 拢1.6bn – further strengthens its ability to offer fairer, more affordable credit to UK borrowers.
The latest funding, which will sit alongside Abound鈥檚 existing facilities from funders including Citi, Waterfall Asset Management and LuminArx, provides additional firepower to scale its operations, enhance financial inclusion and modernise the lending sector.
Abound鈥檚 pioneering cashflow underwriting platform, Render, uses AI-driven open banking insights to truly understand each borrower鈥檚 unique financial situation and affordability.聽
By utilising this real-time financial data, Render also enables Abound to minimise its default rates and therefore offer lower rates to consumers.聽
Abound was founded in 2020 by senior credit experts Gerald Chappell (ex-McKinsey Partner) and Dr Michelle He (ex-EY Director), and is now one of the UK鈥檚 fastest-growing FinTechs, having issued over 拢650m in loans since launching.
鈥淭his new facility from Deutsche Bank further evidences the power of our bank-transaction data led AI credit decisioning technology,鈥� said CEO Chappell.
鈥淥pen banking has become a mature and widely adopted technology in the UK, and is now used by nearly 20m people. As more and more countries around the world adopt open banking, we鈥檙e perfectly poised to start taking what鈥檚 worked in the UK, global.鈥�
Dr He, COO, added: 鈥淎bound鈥檚 diversified funding strategy ensures resilience in the evolving credit market, as we continue to expand, and, increasingly, provide our technology to other lenders.鈥�
Abound announced it had turned profitable in April 2024, just three years after launching.