The cash will be used to expand access to affordable loans in the UK.
London-based alternative lender Fintern has raised £32m in equity and debt funding.
Several fintech founders (undisclosed) and other angel investors are behind the equity cash with Varengold Bank financing the debt side.
Fintern, which launched in early 2021, says it plans to originate £1bn of consumer loans by 2025. Fintern is embracing open banking functionality in order to scale its lending ambitons by looking at each customer’s entire financial life. Transaction data will be analysed - incomings, outgoings, current repayments and repayment history 0 which will allow it, it says, to improve lending affordability.
Fintern currently offers loans of £500-£5,000 for durations of up to three years with a variable APR of 18.8 per cent.
Gerald Chappell, Fintern CEO and Co-founder said the fundraising will help the lender deliver more affordable loans.
“Our distinctive data-driven approach to lending allows us to bypass credit scores, increase approval rates and lower APRs. We're delighted to be partnering with Varengold Bank on the funding of our loan book, benefiting from their deep experience and commitment to Fintech lending innovation.”
Alison Harwood, Head of Varengold’s London Branch, said Varengold is on a mission to support fintechs across Europe in providing innovative, customer-centric lending products.
“Both Varengold and Fintern are passionate about changing the consumer lending landscape in the UK and we’re excited to be working together towards that goal.”