FCA’s authorized lender, Fintern, will expand access to affordable personal loans in the UK. Fintern to replace outdated credit scores with affordability tests to make responsible lending decisions
London, United Kingdom – News Direct – Stockwood Strategy
The UK consumer loan market is worth £ 160 billion, but more than 15 million people in the UK are denied access to affordable loans. These people resort to unsustainable means, including expensive lenders and buy-it-now systems to pay later to run their lives. Today, a digital consumer lender Fintern launched to radically transform people’s financial well-being through an innovative and sustainable approach to lending that goes beyond traditional credit scoring and prioritizes accessibility.
Fintern’s next-generation credit technology bypasses credit scores in lending decision-making, focusing instead on affordability. Fintern builds relationships with customers by helping them understand what they really need, what they can afford, and how they’re going to pay back. Fintern integrates its artificial intelligence platform with Open Banking * to intelligently connect the dots in consumer banking data, allowing Fintern to get the most accurate view of affordability and borrower spending behavior using real-time transaction information.
Gerald Chappell, CEO and co-founder of Fintern commented, “Fintern will help people truly understand what is affordable for them, rather than offering another faceless transaction process. Currently, lenders either lend money or don’t and then no longer engage with the borrower until loan terms end or payments are missed.
“Our success as a lender lies in the ability of our clients to repay their loans. Our AI-powered technology is helping us and all of our clients understand their finances in a deeper and more practical way than ever before. This approach allows us to increase approval rates, reduce APRs, and empower our clients to make the best and most responsible borrowing decisions for them. “
The banks’ approach to personal lending inappropriately results in “the computer says no” responses for millions every year. While traditional behavioral credit scoring (the industry’s approach to credit decision making) works well in separating the highest quality from the weakest, it fails to differentiate risk among the majority of people. . Often the hardest hit consumers are those who have had historic failures on their credit records or, for example, people who are new to credit or have moved from country to country.
Dr Michelle He, COO and co-founder of Fintern added, “We will be closer to our customers than existing lenders can ever be, and that will differentiate us in the market. The intelligent integration of AI and Open Banking data disrupts the credit decision for the best of all customers. To do it well, you have to have the right experience. Data and technology are Fintern’s bread and butter. We have an amazing team with extensive experience in digital lending and credit analysis. They are customer obsessed and made the Fintern app a unique experience. “
Look ahead, Gerald Chappell added: “As we emerge from the Covid-19 pandemic, Fintern is needed more than ever. While many existing lenders are reducing credit supply due to the shock to their existing portfolios, Fintern uses high-frequency transaction data to understand consumers’ real-time financial situation and lend responsibly. Over the next 4-5 years, we intend to grow rapidly in the UK by building a £ 1 billion loan portfolio, expanding our product line and considering expanding to d ‘other geographic areas. “
Fintern received FCA approval as a regulated consumer credit lender in February 2021. The co-founders have assembled an exceptional team that includes credit experts with over 100 years of experience in finance and banking. technology.
* Open Banking regulations require UK banks to open customer transaction data in a secure and standardized form, meaning third party providers have access to banks’ consumer data through APIs. While the UK is the world leader in Open Banking, adoption is underway in 35 economies.
Fintern is a digital consumer lender with a mission to expand access to low-cost personal finance and transform financial well-being. Fintern’s next-generation credit technology bypasses credit scores in lending decision-making, focusing instead on affordability.
Fintern builds relationships with customers by helping them understand their repayment capacity and their credit appetite. Fintern integrates its AI platform with Open Banking to intelligently connect the dots in consumer banking data, allowing Fintern to get the most accurate view of borrower affordability and spending behavior using up-to-the-minute transaction information.
Fintern was founded in 2020 with a team from McKinsey, EY, Bank of America Merrill Lynch, HSBC and XiaoMi.
Fintern is authorized and regulated by the Financial Conduct Authority, reference number 929244, a member of Cifas (the UK’s leading anti-fraud association) and registered with the UK Information Commissioner’s Office in accordance with the Data Protection Regulations 2018.
+44 7714 007257
See the source version on newsdirect.com: https://newsdirect.com/news/fintern-launches-consumer-lending-driven-by-ai-and-open-banking-341950505