6 years ago

Koyo Secures $4.9 Million to Provide Loans Based on Open Banking Data

  • Koyo, a UK-based fintech startup, has raised $4.9 million in a seed round led by Forward Partners

  • The company utilizes open banking data to assess creditworthiness and provide loans to individuals with limited credit histories, offering a more affordable alternative to high-interest lenders.

      • ProblemFinancial Services

      "People with 'thin' credit files, such as migrants or those who have never taken credit, struggle to secure loans, often facing high interest rates and excessive fees. "

      Solution

      "Koyo uses open banking data to assess risk based on a person's transaction history, offering loans to individuals with limited credit history at competitive rates. This approach allows for a more accurate assessment of creditworthiness, providing access to fairer and more affordable loans for a segment of the population often underserved by traditional lenders."

      Covered on