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Abound raises GBP 500 million

Tuesday 7 March 2023 10:38 CET | News

UK-based personal lending fintech company Abound has secured a GBP 500 million fund aimed to improve its development process and expansion in the market.

Following this investment, Abound will be able to lend many borrowers better interest rates by looking at their complete financial overall picture, using artificial intelligence and Open Banking tools. 

Furthermore, the funding will also be used to expand its services to numerous other clients in the UK, as well as develop its business-to-business offers. The improved B2B products will allow other financial institutions, banks, and lenders to partner with Abound in order to use their software and technology. 

The funding round was made from both debt and equity financing, with multiple companies and banks investing in Abound and its projects.

UK-based personal lending fintech company Abound has secured a GBP 500 million fund aimed to improve its development process and expansion in the market.

UK’s presence in the banking industry

In a `Voice of the Industry` article published by The Paypers in February 2023, Tom Wijnen from Worldline analysed how various regulations interact with Open Banking and what could be done in order to unify disparate rules, directives, and standards. 

The publication also focused on Open Banking’s natural evolution towards Open Finance and Open Data, while considering what Open Banking brought along so far and what key European decision-makers have done and will continue to do when it comes to directives, regulations, and initiatives. 

Regarding the United Kingdom, the interview focused on how the region became an exception where Open Banking has a good take-up. While it was difficult to expect the same results in a heterogenous region (such as the EU, where different regulators, banks, financial institutions, governments, and fintech companies exist) must align in one thing, the UK represents a region where strict rules and standards are imposed and respected. 

At the beginning of March 2023, artificial intelligence provider company Ocula Technologies received investment funds from two financial institutions, Castelnau Group, and Lloyds Bank. The aim of the funding round was to offer Ocula the possibility to improve its services and tools while prioritising its clients and their preferences, demands, and needs. 

Following the announcement, Lloyds Banking Group also mentioned that its investment will be delivered in the form of new equity capital while completing the previous investment round made in November 2022. 

A couple of weeks prior, Lloyds Banks confirmed that two of its branches in Sussex will close in May and June of 2023. According to the press release, 77% of individuals in Rustington and 83% in Littlehampton conducted their banking transactions and actions through other channels, like online banking or mobile banking. Thus, over the past few years, the two branches were visited only by a small number of clients, a reason which made the financial company decide on closing the institutions.

 


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Keywords: funding, investment, online banking, digital banking, Open Banking, Open Finance, artificial intelligence, B2B payments
Categories: Banking & Fintech
Companies: Abound
Countries: United Kingdom
This article is part of category

Banking & Fintech

Abound

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