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."

      Covered on