Fluro announces GBP 200 mln financing partnership with BNP Paribas

Fluro was established in 2014, formerly known as Lending Works, and it provides unsecured personal loans to prime and near-prime UK consumers through price comparison sites.

With the newly announced financing, company representatives have stated that they are looking to grow its lending capabilities by providing more customers with fair rates and a transparent service.

What is embedded lending?

Embedded lending, which refers to lending offered via non-financial services or products, eliminates the high cost that comes with third parties such as financial institutions; Fluro is looking to develop partnerships and market its technology to companies that are looking to offer their own consumer loans in a quick manner.

It allows customers to access the needed capital with a few clicks, directly from SaaS companies which, in turn, can maintain control of their brand and customer experience.

Embedded lending can be integrated with the use of customisable API and white label solutions, allowing businesses to have it tailored in ways that meet their customers’ needs, simplifying thus the way in which customers of SaaS companies access the capital that is needed for business-critical operations. Companies use customers’ data on payroll, payments, and spending to increase the likelihood for their customers to obtain loan approval; thus, effective embedded lending implementation requires a lending partner that can build the lending infrastructure and can help companies analyse financial data.

Fluro has announced a GBP 200 million financing partnership with BNP Paribas aimed at expanding its lending capabilities.

UK Consumer spending market in 2022

The GBP 200 million financing comes during a period where the consumer lending market in the UK is facing uncertainty. According to information provided by UKFinance, customers on fixed-rate mortgage deals will not see changes to their payments, however the average borrower looking to refinance in 2022 might notice a substantial decrease in their disposable income as a result of inflation and interest rate spikes.

The report suggests that in the second quarter of 2022, house purchase activity has returned to pre-pandemic norms, however demand for houses is believed to lower in the near future due to the pressures brought forth by the cost of living.

An article published by Bloomberg quotes Moneyfacts Group Plc. showing that the average two-year fixed rate mortgage on homes have seen a 6.07% increase in October 2022, the highest reported level since November 2008. Consequently, the average five-year fixed rate rose 6%, a level not seen since February 2010.