Alternative credit fintech ramps up UK expansion
Bridging and development lenders are among those who have already signed up to Kennek, a software provider for the alternative credit space that is “doubling down” its expansion efforts in the UK this year.
The London-based fintech, which launched last year, has developed a comprehensive solution that streamlines operations for the alternative credit industry. It can be used by existing lenders and banks, but also as a white label product for new lenders.
Chief executive and co-founder Xavier De Pauw (pictured right, with team), who previously worked in structured finance at Merrill Lynch, told Peer2Peer Finance News that UK lenders from the bridging and development space, as well as those funding small- and medium-sized enterprises, have already signed up to use Kennek’s software as a service. He declined to name the lenders at this stage.
Read more: Property investors drive bridging loan activity
De Pauw said that he and his co-founders “saw a pain point” that Kennek aims to solve by providing an end-to-end solution for smaller lenders.
“There was not much technology available for them,” he said. “They could pick certain elements like open banking but not one software as a service.”
Kennek raised $4.5m (£3.66m) in a pre-seed funding round in February and will be using the proceeds to build out its 20-strong team and technology offering.
Read more: Sweden’s SaveLend eyes profitability and EU expansion this year
It is launching a new underwriting-as-a-service product, which will automate back and middle office processes such as risk management and payments.
While Kennek is more established in the UK market, it is also planning to expand into continental Europe.
“This year, we’re doubling down on the UK – it’s the biggest alternative credit market in Europe,” De Pauw said.
“But there’s definitely local demand in mainland Europe as well and we have some continental lenders ready to sign. We will be putting some revenues from the fundraise into a European expansion.”
Read more: Marketplace payments platform Ryft receives FCA licence