London fintech Abound has ramped up its lending capacity with a new £250m financing deal with Deutsche Bank.
The latest funding, which allows the firm to offer more consumer loans and takes its total lending capacity to £1.6bn, provides additional firepower to scale Abound’s operations, enhance financial inclusion, and modernise the lending sector.
The financing will sit alongside Abound’s existing facilities from funders including Citi, Waterfall Asset Management and LuminArx.
Alongside offering loans to consumers, Abound has developed its own cashflow underwriting platform, Render, which uses AI-driven Open Banking insights to understand each borrower’s unique financial situation and affordability. By utilising this real-time financial data, Render also enables Abound to minimise its default rates and therefore offer lower rates to consumers.
Gerald Chappell, CEO and co-founder of Abound, said: “This new facility from Deutsche Bank further evidences the power of our bank-transaction data led AI credit decisioning technology.
“Open Banking has become a mature and widely adopted technology in the UK, and is now used by nearly 20 million people. As more and more countries around the world adopt Open Banking, we’re perfectly poised to start taking what’s worked in the UK, global.”
Co-founder and COO Dr Michelle He added: “Abound’s diversified funding strategy ensures resilience in the evolving credit market, as we continue to expand, and, increasingly, provide our technology to other lenders.”
Abound announced it had turned profitable in April 2024, just 3 years after launching.
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