Plend, a UK-based ethical lender that is revolutionizing the traditional credit system by utilizing open banking data for lending decisions, has successfully secured £40 million in seed funding.
The funding round saw participation from Active Partners, Velocity Juice, Sivo, and founders from Monzo, Starling Bank, and Oodle Car Finance, along with existing investors Ascension, Tomahawk VC, DD Venture Capital, and Haatch.
Plend asserts that the conventional credit system is outdated and often discriminatory, as it relies on historical data and does not accurately reflect an applicant’s current financial situation. By leveraging open banking, Plend aims to offer a more personalized lending experience and smarter credit decisions.
Since its launch in July, the startup has processed over £40 million in loan applications, with its loan book increasing by 20% month on month. As many individuals in the UK navigate a challenging economic environment and rising interest rates, Plend anticipates an uptick in users seeking to restructure their debts through its platform.
Rob Pasco, CEO of Plend, stated, “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.”