Abound Secures £500 Million in Funding to Transform Lending with Open Banking and AI

March 6, 2023

Author: Karan Bodh
Abound Secures £500 Million in Funding to Transform Lending with Open Banking and AI

Abound, a UK-based fintech, has secured a substantial £500 million in funding, signalling a significant milestone in its mission to revolutionise lending. Combining open banking and artificial intelligence, Abound offers borrowers more favourable loan terms by analysing their complete financial situation rather than solely relying on credit scores. This latest investment, comprising both debt and equity financing, underscores the growing demand and success of Abound's innovative approach in the finance industry.

Founded in 2020 by two seasoned credit experts, Abound has quickly emerged as a game-changer in the lending landscape. By leveraging Open Banking APIs and advanced AI algorithms, the company provides a holistic view of individuals' finances, enabling more accurate risk assessment and personalised loan offers. This approach has not only allowed Abound to serve over 150,000 customers but has also led to a remarkable 30% month-on-month growth rate.

The funding round saw participation from a diverse set of investors, including tech giants and global banks, highlighting the widespread appeal of Abound's service. Debt financing was secured from prestigious institutions such as Citi and Waterfall Asset Management, while equity investment came from notable firms like K3 Ventures, GSR Ventures, and Hambro Perks. This comprehensive support reflects confidence in Abound's vision and its ability to disrupt traditional lending practices.

With the additional capital injection, Abound aims to accelerate its expansion efforts and further enhance its technology-driven lending platform. A key focus area is the development of its business-to-business offering, which will enable other financial institutions to leverage Abound's advanced tools and insights. This strategic move not only diversifies Abound's revenue streams but also extends the reach of its impactful solutions across the industry.

Gerald Chappell, CEO, expressed excitement about the company's trajectory, emphasising the importance of the latest investment in fuelling growth amidst challenging economic conditions. He underscored Abound's commitment to reshaping the lending landscape and empowering consumers with access to fairer and more transparent financial services. The company's ambitious goal of reaching £1 billion on its balance sheet by 2025 underscores its confidence in the scalability and sustainability of its business model.

Abound's success story underscores broader trends in the fintech space, where innovation and technology are reshaping traditional financial services. By harnessing the power of Open Banking and AI, Abound is not only meeting the evolving needs of consumers but also driving positive change in an industry ripe for disruption. As the company continues to scale and expand its offerings, it remains poised to redefine lending norms and set new benchmarks for financial inclusion and affordability.

In conclusion, Abound's latest funding milestone marks a significant chapter in its journey towards transforming lending practices. With a steadfast commitment to innovation and customer-centricity, Abound is well-positioned to lead the charge towards a more inclusive and equitable financial ecosystem. As the company continues to break new ground, its impact on the industry and the lives of consumers is poised to be profound and far-reaching.