Plend, a UK "ethical lender" that is ditching the traditional credit system and is instead using open banking data for lending decisions, has raised £40 million in seed funding.
Active Partners, Velocity Juice, Sivo, and the founders from Monzo, Starling Bank and Oodle Car Finance joined the round alongside existing investors Ascension, Tomahawk VC, DD Venture Capital and Haatch.
Plend says that the credit system is outdated and backward, discriminating against applicants based on historic and limited data and not lending based on what they can actually afford.
Instead, it uses open banking to make credit more personal and make what it claims are smarter lending decisions.
Launched in July, the startup has already seen over £40 million in loan applications processed, with the loan book increasing 20% month on month.
And, with Brits struggling to keep up with the changing economic climate and rising interest rates, the company is expecting to see more people turning to its platform to restructure their debts.
Rob Pasco, CEO, Plend, says: "We are thrilled to be working with our newest investment partners to provide a truly ethical alternative to the broken credit scoring system that locks so many people out of the market, especially during these times of economic turbulence and rising interest rates."