On a mission to make affordable loans available to more people, the London-based fintech is transforming the credit industry.
There is more data available than ever before, we truly do live in a data-run world, yet, most lenders still base their decisions on old-fashioned credit scoring systems.
According to Fintern, this is leaving over 15 million people in the UK facing unnecessarily high borrowing costs and unsuitable credit products.
Fintern uses Open Banking and AI to make better lending decisions and to get a true picture of each applicant’s unique financial situation.
The company looks at a variety of factors – what you earn, how you spend, and what’s left at the end.
By combining this data with several other sources, Fintern can base their lending decisions on what someone can afford to borrow, rather than relying on an incomplete snapshot of the past.
The fintech firm wants to make lending easy, open, affordable and accessible.
Since launching its consumer lending product in March 2021, Fintern processed more than 50,000 loan applications and proved that this affordable alternative works.
The solution offers the flexibility to manage loan repayments around customers’ personal needs with lower interest rates than the market
. On average, customers who choose to consolidate their debts with Fintern save £1,125 in interest costs compared to traditional lenders.
The young company claim that with their lending system, credit loss rates are less than half of those that the traditional credit scoring system would have otherwise predicted.
This is achieved while expanding access to affordable credit: over 60% of Fintern’s customers would not have been approved for their loans had they been assessed by traditional methods.