Abound utilises artificial intelligence and Open Banking data to evaluate borrowers' financial situations in real time. Its proprietary lending platform, Render, applies AI-driven cashflow underwriting, which, according to the company, allows for lower default rates and more competitive loan rates compared to traditional credit assessment methods that rely on historical credit scores.
The company, which began operations in 2024, reported achieving profitability within three years. It currently offers loans between GBP 1,000 and GBP 20,000, with annual percentage rates (APRs) ranging from 8.0 percent to 29.8 percent, and repayment terms extending up to eight years.
Representatives from Abound described the funding as further validation of the firm’s AI-based approach to credit decisioning, which relies on bank transaction data. They noted that Open Banking has seen significant adoption in the UK, with nearly 20 million users, and expressed confidence that as more countries implement similar frameworks, the company's technology could expand beyond the UK.
Another Abound official highlighted the company’s diversified funding approach, stating that it supports resilience in a shifting credit market while also enabling Abound to extend its technology to other lenders.
In August 2024, Abound worked with D•One, the Open Banking division of the ClearScore Group to integrate Open Banking capabilities. At the time, representatives from Abound commented that traditional credit scores are limited and often exclude low-risk individuals who lack credit history. Abound views Open Banking as a transformative tool for lending, allowing them to reach more people and improve credit performance. They highlighted that D•One and ClearScore's alignment with their mission supported their goal of expanding access to affordable credit.
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