Abound Secures £300 Million to Transform AI-Powered Lending and Expand Fair Credit Access

​London-based credit technology firm Abound has recently secured up to €299.8 million in financing from Deutsche Bank, enhancing its ability to provide fair and affordable credit to UK borrowers. This substantial funding increases Abound's total lending capacity to €1.9 billion, enabling the company to scale operations and modernize the lending sector.

Founded in 2020 by credit experts Gerald Chappell and Dr. Michelle He, Abound has rapidly become one of the UK's fastest-growing fintech companies, issuing over €779.7 million in loans since its inception. The company's success is attributed to its innovative use of Open Banking and artificial intelligence (AI) to assess borrowers' financial situations accurately.

Abound offers loans ranging from €1,100 to €23,900, with repayment terms of up to eight years and annual percentage rates (APRs) between 8% and 29.8%. By leveraging real-time financial data through its proprietary AI platform, Render, Abound can offer personalized loan terms that reflect each borrower's unique financial circumstances.

The recent financing from Deutsche Bank complements Abound's existing facilities from funders such as Citi, Waterfall Asset Management, and LuminArx. This diversified funding strategy ensures resilience in the evolving credit market and supports Abound's mission to enhance financial inclusion.​

Abound's approach challenges traditional credit scoring systems by utilizing AI-driven Open Banking insights to understand each borrower's affordability. This method has resulted in 75% fewer defaults than the industry standard, allowing Abound to offer lower interest rates to consumers.

In May 2024, Abound secured an additional £800 million in debt and equity financing, bringing its total funding to £1.3 billion. This funding round included a multi-year asset-backed debt financing arrangement from Citi and a Series B equity round led by Silicon Valley-based GSR Ventures.

Abound's CEO and co-founder, Gerald Chappell, emphasized the significance of this investment, stating, "This new facility from Deutsche Bank further evidences the power of our bank-transaction data led AI credit decisioning technology." The company's COO and co-founder, Dr. Michelle He, highlighted the importance of a diversified funding strategy to ensure resilience as Abound continues to expand and provide its technology to other lenders

Abound's innovative approach has positioned it at the forefront of responsible innovation in financial services, with solutions that drive financial inclusion on a global scale. By harnessing the power of AI and Open Banking, Abound is revolutionizing credit decision-making and extending affordable credit to a wider range of customers

The company's growth trajectory includes plans to double its team size from 65 to 130 people, further supporting its expansion efforts. Abound's commitment to leveraging technology for fair lending practices continues to set it apart in the fintech industry

Abound's achievements reflect a broader trend in the financial technology sector, where innovative approaches to lending and credit assessment are gaining traction. By focusing on individualized financial analysis and leveraging advanced technologies, companies like Abound are reshaping the landscape of consumer lending.​

As Abound continues to grow and secure additional funding, its impact on the lending industry and financial inclusion is expected to expand, offering a model for other fintech companies aiming to combine technological innovation with responsible lending practices.

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