AI-powered credit technology firm Abound has secured up to £250m in financing for consumer loans from Deutsche Bank.
The London FinTech says the deal – which takes Abound’s total lending capacity to £1.6bn – further strengthens its ability to offer fairer, more affordable credit to UK borrowers.
The latest funding, which will sit alongside Abound’s 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’s pioneering cashflow underwriting platform, Render, uses AI-driven open banking insights to truly 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.
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’s fastest-growing FinTechs, having issued over £650m in loans since launching.
“This new facility from Deutsche Bank further evidences the power of our bank-transaction data led AI credit decisioning technology,” said CEO Chappell.
“Open 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’re perfectly poised to start taking what’s worked in the UK, global.”
Dr He, COO, 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 three years after launching.