Growth Capital Ventures leads oversubscribed investment into fintech lender
Growth Capital Ventures has led a £695,000 investment round into Finexos – a fintech lender which aims to improve access to credit for millions.
The investment round was oversubscribed by almost 40 per cent from the initial target.
The funds will used for Finexos’ global expansion as it rolls out new products and improves its credit checking technology.
The fintech lender uses artificial intelligence and machine learning to measure financial risk without the need of a credit score. Its technology uses more than 220 data points to decide whether a consumer or business is eligible for a loan.
Read more: RateSetter reached profitability last year
“Over 12 million people in the UK alone are in the high-interest, revolving credit trap as a result of legacy credit scoring,” said Norm Peterson, co-founder and chief executive of Growth Capital Ventures.
“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.”
Read more: Funding Xchange warns of risk in return to pre-crisis lending
“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,” added Mark Fisher, founder of Finexos.
“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customers, utilising technology to provide better outcomes for consumers and lenders that can, overtime, replace the outdated and inefficient way credit scoring works currently.”
Read more: Eight lenders join new RLS, but still no P2Ps