The London-based fintech is looking to supply the UK’s underbanked with accessible credit.
Banking start up Fiinu has today launched a crowdfunding campaign on Seedrs, as it seeks £500k in seed funding to support its development and an application for regulatory approval from the Financial Conduct Authority (FCA).
The platform has said its primary purpose with investors is “to involve them more closely with building a customer-focused bank that works for them, not against them”. In exchange for funding, Fiinu is offering investors A-class shares, with no difference to the shares held by the founder.
Fiinu plans to build a financial app which will provide access to credit to "the lower half of the UK’s population", who it says are currently excluded from accessing affordable short-term bank credit. Its CEO, Marko Sjoblom, has pledged to save UK consumers a total of £1bn annually on overdraft fees within five years.
To distinguish itself from competitors, the banking start up has developed an automated lending robot named Fiinuscore, which will utilise data made available by PSD2 and Open Banking to provide “small overdrafts to millions of people within the payday loan price cap”.
“In this country we have some real issues in financial services. Whenever Fiinu sees a service failure in the market it will try to solve it through the innovative use of technology,” said Sjoblom.
“With the implementation of PSD2, the power is back in the hands of consumers and we will be able to help them most via our trademarked Bank Independent Overdraft”.
Fiinu is supported by its experienced board from the financial services sector, chaired by Andy Briscoe who is also the Chair of the Money Advice Service and the UK Financial Capability Board. Other members boast former employment with the Bank of England,HSBC’s Global Banking and Markets business and insurance firm Vitality.
Andy Briscoe, Fiinu Chair and Chair of the Money Advice Service added: “UK banking is going through a period of rapid transformation and I am excited to see that new entrants like Fiinu want to help those people who feel excluded from the benefits of financial services.
“I have seen a lot of change in the financial service sector over the years, but I believe Open Banking offers unparalleled opportunities to serve consumers better.”