London based credit technology company Abound says this new funding will boost the company’s total lending capacity to £1.6B.
Abound leverages advanced credit technology to assess borrowers using real-time financial data via Open Banking insights, aiming to provide loans tailored to individuals’ unique financial circumstances.
By incorporating AI-driven cashflow underwriting through its proprietary platform, Render, Abound can reduce default rates and offer more competitive loan rates compared to traditional methods that rely on outdated credit scores and statistical averages.
„Abound’s AI technology, Render, scans customers’ bank transaction data to understand each person’s unique financial situation and determine how much they can afford to repay each month. This contrasts with traditional credit checks, which rely on statistical averages which may be right on average but are wrong in almost every individual case.” – the company explained.
According to the company, „The Render technology means that Abound sees 75% fewer defaults than the industry standard. As a result, Abound is able to offer lower interest rates to consumers than they can typically find elsewhere. This market leading credit performance is also the reason that existing investors are continuing to back Abound.”
It is estimated that over 15 million people in the UK struggle to borrow for unexpected costs, with many with poor credit scores having to accept unacceptably high interest rates. Abound’s mission is „to change the way that credit decisions are made globally so that more people can access loans at rates they can afford to repay, driving financial inclusion”.
The company achieved profitability just three years after its launch in 2024. The company currently offers loans ranging from £1,000 to £20,000 with APRs between 8.0 percent and 29.8 percent, and repayment terms of up to eight years.
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.”
Abound is leading the use of Open Banking and AI in consumer credit decisioning. While this technology is at an early stage, Abound believes it will become a must-have in the lending space over the next 3 years. Abound is already providing its industry leading Render technology to banks and traditional lenders across Europe to support them through the AI-transition.
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