The founders of LendInvest and MarketFinance are among the backers of Credit Kudos’ £5m series A funding round.
Credit Kudos is a challenger credit reference agency which uses Open Banking for credit assessment.
The investment, led by AlbionVC, featured support from many fintech angels such as Christian Faes, co-founder and executive chairman of LendInvest and ComplyAdvantage chief executive Charlie Delingpole, who co-founded MarketInvoice – now known as MarketFinance.
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“I have been really impressed by Credit Kudos’ fresh approach and its ability to harness open banking data to change the lending market as we currently know it,” Faes said.
“While developing a transformational business model, Credit Kudos has also developed a purpose-led approach to the sector, ensuring borrowers are both served and protected by lenders.
“I genuinely think it is one of the most interesting companies in fintech at the moment.”
“In these challenging times, it’s more important than ever that people have access to the right financial products,” said Freddy Kelly, founder and chief executive of Credit Kudos.
“We believe Open Banking will soon be the standard for credit assessments and, as the first regulated Credit Reference Agency with the capability to measure creditworthiness using open banking data alone, we are in a fantastic position to provide a service that is needed now more than ever.
“I’m thrilled to be partnering with AlbionVC to take the company to the next stage of growth.
“The continued support of our investors in unprecedented market conditions is testament to the quality of our business and all the great people working at the company.
“With the Financial Conduct Authority’s credit information market study on the horizon, the timing of this funding means we are now in an even stronger position to provide a real challenge to the incumbent credit reference agencies.”
Credit Kudos is part of a group of fintechs have been developing ‘Covid Credit’ to help sole traders apply to the government for emergency funding during the Covid-19 pandemic.