The financial technology sector continues to witness growing investments in AI-driven credit assessment, with Abound obtaining £250 million in financing from Deutsche Bank. The UK-based fintech company, which specializes in leveraging real-time financial data for lending, aims to expand its lending capacity to £1.6 billion. With its AI-based underwriting system, the firm seeks to provide loans tailored to individual financial profiles rather than relying solely on traditional credit scores. Abound’s approach reflects a broader shift in the financial industry, where data-driven decision-making is gaining traction. This funding marks a significant development for the company as it strengthens its position in the competitive lending market.
Abound’s latest funding comes after a series of previous investments aimed at enhancing its lending capabilities. In earlier funding rounds, the company raised significant amounts to support its AI-based credit decisioning technology. Over time, its lending model evolved to integrate Open Banking insights, allowing the company to analyze real-time financial behaviors instead of historical credit scores. These advancements contributed to its profitability within just three years of launching in 2024. The fintech sector’s increasing reliance on Open Banking and AI-driven underwriting demonstrates a broader trend in alternative lending strategies.
How Does Abound’s AI Credit System Work?
Abound utilizes Open Banking data and its proprietary platform, Render, to assess borrowers’ financial behaviors in real time. By analyzing cash flow patterns rather than relying on static credit scores, the company aims to reduce default rates and offer more competitive loan rates. This method allows it to provide lending solutions that better match individual borrowers’ financial circumstances. According to the company, the use of AI-driven underwriting can lead to improved affordability assessments and loan terms.
What Are the Implications of This Funding?
The £250 million facility from Deutsche Bank will enable Abound to scale its operations, increasing its overall lending capacity to £1.6 billion. This expansion positions the company to serve more borrowers while continuing to refine its AI-based assessment models. The funding also supports Abound’s broader vision of extending its technology to other lenders, reinforcing its role in the fintech ecosystem. The company offers loans from £1,000 to £20,000 with APRs ranging between 8.0 percent and 29.8 percent, along with repayment terms of up to eight years.
“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.”
– Gerald Chappell, CEO and co-founder of Abound.
“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.”
– Dr Michelle He, COO and co-founder of Abound.
With the widespread adoption of Open Banking in the UK and increasing global interest in similar frameworks, Abound’s lending approach reflects a move towards more personalized financial assessments. Traditional credit assessment methods based on historical data are being supplemented or replaced by real-time financial insights. This shift provides opportunities for borrowers who may not have strong credit histories but demonstrate stable financial behaviors. The growing competition in AI-driven lending could lead to further innovation in credit decisioning, potentially influencing mainstream financial institutions to adopt similar technologies. As Abound continues to expand, its success will likely depend on its ability to refine its underwriting model while maintaining responsible lending practices.
