AI-powered credit technology firm Abound has secured up to £250 million in new financing from Deutsche Bank to further scale its operations and modernise the UK’s lending landscape. This funding will support Abound’s mission of offering fairer, more affordable credit by leveraging AI and Open Banking technology to accurately assess borrower affordability.
The latest capital injection complements Abound’s existing funding facilities from Citi, Waterfall Asset Management, and LuminArx, allowing the company to solidify its position as a pioneer in AI-driven consumer finance. However, the company’s valuation remains undisclosed.
Abound has previously secured significant funding rounds, including a recent announcement of up to £800 million in a mix of debt and equity, which will be used to expand into prime lending in the UK and roll out its Render platform globally. This brings their total funding potential up to £1.3 billion, marking one of the largest fintech funding rounds in Europe.
AI-powered lending: Abound’s distinctive edge
Traditional credit models often rely on outdated credit scores and statistical averages, which fail to account for a borrower’s real-time financial situation. Abound’s proprietary cashflow underwriting platform, Render, disrupts this approach by using AI to analyse Open Banking data, providing a more accurate and individualised assessment of a borrower’s financial health.
Render’s AI models assess spending patterns, income stability, and other financial behaviours to determine true affordability. This innovative approach minimises default rates, allowing Abound to offer lower interest rates to its customers, making borrowing more accessible and sustainable.
The company reports a 75% reduction in defaults compared to industry standards, enabling them to offer more competitive rates. The latest funding from Deutsche Bank validates this approach, demonstrating that AI-powered credit analysis can scale effectively without compromising on risk management.
Championing diversity in AI and finance
Abound was founded in 2020 by credit experts Dr. Michelle He and Gerald Chappell, both of whom bring extensive expertise in credit, lending, and financial analytics.
Dr. Michelle He, the co-founder and Chief Operating Officer (COO) at Abound, has been instrumental in developing the AI models that power Abound’s credit platform. Previously, Dr. He was a Director at EY (Ernst & Young), where she specialised in advising leading banks and financial institutions on lending analytics, credit modeling, and regulatory compliance.
Her deep expertise in risk management and AI-driven credit frameworks has been pivotal in ensuring that Abound’s proprietary platform, Render, not only improves affordability assessments but also maintains rigorous compliance with regulatory standards. Dr. He holds a PhD in Computer Science, with her research focusing on applying machine learning models to financial systems.
Dr. He’s leadership in a male-dominated fintech sector highlights the growing influence of female founders in shaping the future of AI and finance.
On the other hand, Gerald Chappell, co-founder and CEO of Abound, brings a wealth of experience from his tenure as the Global Head of Digital Lending at McKinsey & Company. Chappell’s strategic vision and expertise in scaling digital lending platforms have been instrumental in establishing Abound as one of the UK’s fastest-growing fintechs.
Smarter and fairer lending with AI
Abound’s platform uses AI-powered technology to offer fairer loans to UK borrowers by basing decisions on actual affordability rather than outdated credit scores. Abound offers loans between £1,000 and £20,000 with repayment terms of up to 8 years. Interest rates range from 8.0% to 29.8%, lower than those offered by many traditional lenders. The company is authorised and regulated by the Financial Conduct Authority (FCA)under firm reference number 929244 and is a member of Cifas, the UK’s leading anti-fraud association.
While Abound has established itself as a leader in AI-powered consumer lending, it faces competition from several notable fintechs and traditional lenders adopting AI models. It’s rivals include Lendable and Zopa, two prominent UK-based fintech companies, have recently secured significant funding to fuel their growth and innovation in the financial services sector.
Lendable, an AI-powered consumer finance platform headquartered in London, raised £210 million in a funding round, which took it’s valuation to over £3.5 billion. Likewise, UK- based neobank Zopa secured £68 million in funding to support the launch of a new current account and advancements in artificial intelligence technology.
Future outlook
With £250 million in new financing from Deutsche Bank, Abound is well-positioned to expand its footprint in the UK lending market. The company plans to use the funds to scale its operations, enhance the Render platform, and continue driving financial inclusion by offering fairer loans to underserved segments. As Abound’s AI models continue to learn and improve, the company is poised to redefine the future of consumer lending, making credit more affordable and accessible for millions.
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.”
Dr Michelle He, COO and co-founder of Abound, said: “Abound’s diversified funding strategy ensures resilience in the evolving credit market, as we continue to expand, and, increasingly, provide our technology to other lenders.”
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