5 years ago
Koto Raises €1.4 Million to Launch UK's First 'Challenger Lender'
Koto, a UK-based fintech startup, has raised €1.4 million in funding to launch its credit services in the UK
Koto aims to serve the 12 million near-prime consumers in the UK who have limited credit options due to factors like inconsistent income or a mark on their credit history
The company uses a unique credit risk modeling system, adapted from its sister company Monobank in Ukraine, to assess creditworthiness beyond traditional credit scoring
Koto's credit offerings are transparent, with fixed fees, and accessible through a mobile app
The funding will be used to acquire users, train its AI credit risk systems, expand operations, refine marketing, and grow its team.
ProblemFinancial Services
"12 million creditworthy people in the UK are excluded by mainstream lenders because they have 'thin files', are new to credit or the UK, or have a mark against their credit history, making it difficult for them to access credit."
Solution
"Koto is a challenger lender that uses a hybrid scoring system, combining traditional credit scoring with proprietary machine learning, to assess creditworthiness and offer loans with transparent, fixed fees to those underserved by traditional banks."