Looking at the UK landscape and 10 innovative global fintechs
With the ever-evolving landscape of financial technology, consumer lending has never been more accessible and efficient – in large part, due to fintech innovation. With a global consumer credit market size of $110 billion (in the UK, consumer lending reached reached over 28 billion British pounds in January 2023, which is a dramatic recovery from early in 2020), rapidly growing middle classes in emerging markets, and economic uncertainty affecting us all, the opportunity for lenders to tap into the consumer need for credit is immense.
As predicted, the UK economy in particular is adapting as many experts feel a major recession has been avoided, and as a result, banks are expected to increase their lending this year. “Total loans in the UK are expected to rise 1.2% this year… with falling inflation, lower-than-anticipated energy bills and a resilient job market” contributing to an increase in the UK GDP, “driving an increase in consumer and business borrowing.”
When it comes to consumer lending specifically, fintechs are answering the call for increased borrowing demands and are looking to disrupt the traditional. No credit score? No problem. Worried about missing payments? You’re covered. From a company supporting gig workers around the world to a credit card for foodies, these ten global fintechs are shaking up auto lending, BNPL, credit cards, mortgages, and retail/POS.
Auto Lending
Lendbuzz – USA
If you’re new to credit, it can be difficult to get approved for auto financing. Lendbuzz is here to change that. The fintech proves a simple and fast application process that assesses creditworthiness with data beyond just your credit score. Working directly with auto dealerships, Lendbuzz offers personalized loans and instant decisions, taking you through the process from start to finish.
Founded in Nigeria in 2020, Moove is a global startup that aims to democratize access to vehicle ownership for “mobility entrepreneurs” across Africa, the Middle East, Europe, and India. Tackling the high barrier to vehicle financing that millions face, especially in emerging markets, Moove uses a revenue-based financing model to offer car loans that drivers then pay off through their ridesharing app.
Buy Now, Pay Later
ShopBack (formerly Hoolah) – Southeast Asia and Australia
Singapore-born ShopBack is a fintech that provides improved shopping experiences to consumers and broader reach and shopper engagement to brands and retailers. Operating across APAC, their integrated BNPL service allows you to pay off purchases in installments of three, which can be combined with features such as cashback and prepaid retail vouchers. ShopBack hopes to make shopping “more rewarding, delightful, and accessible.”
Nelo – Mexico
If you want to buy now, pay later at Mexico’s top merchants, you want to download Nelo’s top-rated app – it’s the first of its kind in the region, enabling shoppers to pay in installments with a virtual card generated at checkout. And through the company’s partnership with Mastercard, you can use it at any online merchant. You can also use it to finance everyday expenses like utilities and other bills, a mark of BNPL innovation and a sign of how the segment is likely to evolve.
Credit Card
Cred.ai, USA
Cred.ai is an AI-powered credit card designed to help users build credit while mitigating missed payments. The fintech sets up automated spending limits, helping you spend within your means, and their proprietary underwriting model means you don’t need a FICO score to apply. The card itself is metal, unicorn-themed, and free for approved applicants. It works best with their digital banking product and comes with features like an early paycheck (called flux capacitor) and digital “self-destruct” cards called stealthcards.
Yonder, London
A rewards credit card “great for expats and immigrants,” Yonder is a rewards credit card that boasts no foreign exchange fees, worldwide travel insurance, and you can apply without a UK credit score. Leveraging open banking technology, the credit card is able to focus on financial inclusion while rewarding users for the experiences that enrich their lives, whether it’s travel or dining at Yonder’s curated restaurant partners around London.
Mortgage
Hypofriend, Germany
Hypofriend was founded to simplify and personalize the process of getting a mortgage for Germans. They use advanced technology to analyze your optimal finance strategy while predicting bank decisions in order to connect you to a personalized mortgage offer from a lender that fits your needs. The Hypofriend team is also there to advise from start to finish, demystifying the complex process and providing transparency to support more financial literacy and understanding.
HomeCrowd, Malaysia
Focused on helping Millennials in Malaysia achieve the dream of owning a home, HomeCrowd uses holistic, data-driven credit scoring to match mortgage applicants with peer-to-peer (P2P) lenders on a blockchain-powered, Web3 platform. The company is the first in the country to be licensed and regulated for P2P lending specifically for mortgages and consumer financing by the government.
Retail/Point-of-Sale (POS)
Blnk, Egypt
Did you know that less than 4% of Egyptians have access to credit cards? The majority of Egyptians must rely on savings or finance purchases with high-interest loans. Blnk is here to change that – they enable any consumer to receive instant credit at the point-of-sale. Their current network of merchants includes over 300 businesses and the fintech has already disbursed over $20 million in loans.
Acima, USA
US-based Acima offers consumers lease-to-own solutions as an alternative to traditional retail financing. You don’t need credit to apply and your credit score isn’t affected. Simply lease the furniture, electronics, or any other item you want to purchase and “rent” it until the cost of the item is covered, or pay early at a discounted rate. If you no longer want the item, just return it! Acima enables online and in-store shopping and offers flexible payment terms.
Unlocking Consumer Lending Innovation
As access to consumer credit increases around the world, both fintechs and traditional financial service providers will need to leverage the right technology to provide it. The ten fintechs you just read about have found their innovative idea to disrupt consumer lending – what will yours be?
No matter the idea or use case, you need a technology partner that thinks like you. Future-proof your consumer lending strategy and launch new products with a data and decisioning ecosystem that manages risk, so you can focus on what matters most: serving your customers in new, disruptive ways.
Read the eBook, The Secret to Consumer Lending Success, to discover how you can overcome any lending challenge with a robust credit risk decisioning platform that grants access to both alternative and traditional data sources through a single API.