NatWest has made a minority investment in rewards credit card startup Yonder.
Founded by three alumni from Clearscore and launched in 2022 with £20 million in startup funding, Yonder addresses the challenges faced by expats in the UK who lack a credit history when applying for credit cards. The company leverages open banking data to create a more detailed and personalized understanding of customers’ spending habits and creditworthiness, while offering a range of rewards for cardholders.
NatWest intends to collaborate with Yonder to integrate their insights and enhance the customer experience for its 19 million clients.
Ladi Greenstreet, head of strategic investments at NatWest Group, commented, “Today’s consumer seeks financial experiences that are personalized and seamlessly fit into their daily lives. Our investment in Yonder underscores our commitment to providing better lifestyle experiences with financial tools that resonate with our customers’ goals and aspirations. We look forward to discovering innovative ways to create rewarding and responsible financial interactions that meet our customers’ evolving needs.”
Yonder recently raised £23.4 million in September at a valuation exceeding £100 million. This follows the startup’s earlier Series A funding round in April 2023, which secured £12.5 million in equity and £50 million in debt. The additional funds will allow Yonder to double its workforce and expand its rewards platform into new categories, as well as introduce city-specific experiences in locations such as Manchester, Birmingham, Bristol, and Bath, along with its existing offerings in London.
Tim Chong, founder and CEO of Yonder, expressed enthusiasm about NatWest’s investment: “We’re thrilled to welcome NatWest as an investor in Yonder. Their expertise and insights will be invaluable as we continue to grow and scale our platform. Together, we can redefine the future of consumer credit and deliver tailored financial services that meet the unique needs of our users.”
This minority stake in Yonder was driven by NatWest’s Innovation and Partnerships team, following recent strategic investments in businesses like Serene, an AI platform focused on addressing financial vulnerability. The bank is actively seeking more fintech investments, targeting opportunities from seed to Series B startups that align with its strategic goals.