New UK challenger bank Fiinu is looking to raise £500,000 through a crowdfunding campaign on Seedrs.
As of writing, the crowdsale has raised up to £236,000 from 200 investors. The company is offering a total of 6.67 of its equity through the campaign, and is raising the funds at a pre-money valuation of £7m. This crowdfunding campaign is part of the bank’s three-year initiative to raise £30m over the next three years.
Fiinu will launch at the start of next year, and hopes to improve the global overdraft market through the implementation of machine learning. Its Bank Independent Overdraft service is a current account with an overdraft extension and aims to support consumers whose accounts are overdrawn annually. Through this, the bank hopes to help its users save money and improve their credit scores.
The platform utilises AI, machine learning, and data made available through PSD2 and open banking to help better assess short-term debtors. When a consumer applies for credit, Fiinu calculates eligibility and fair prices based on hundreds or rule and data such as profiling, fraud and social data.
The bank is looking to accept their first UK customers over the next 12 months, and is currently in the process of acquiring a UK banking licence.
Marko Sjoblom, founder and CEO of Fiinu, said, “We will offer choice and simplicity to consumers in a market where they are often at the mercy of large banks’ fees and rates. We aim to rebuild banking from the ground up, on a similar concept to Uber or AirBnB, by identifying and tackling inefficiencies to streamline banking and help customers be in better financial shape after they join us.”
Challenger banks have had a very active week. European challenger bank for SMBs closed its own round of funding earlier in the week, picking up €6.4m from investors including daphni. The bank is currently in the process of getting a banking license from both French banks and insurance governing body Autorité de contrôle prudentiel et de resolution and with the European Central Bank.
Fellow UK challenger bank Tandem acquired the personal finance platform Pariti for an undisclosed amount.
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