Newcastle-based fintech Noggin HQ has raised £2.3m in an oversubscribed seed round and launched its alternative credit scoring technology to UK lenders.
The startup uses permissioned banking transaction data to help lenders identify creditworthy customers whom traditional systems miss.
The seed round comes as the business obtains its credit referencing authorisation from the Financial Conduct Authority (FCA).
Noggin HQ can now provide its cashflow-based credit data to FCA-authorised lenders. This makes it one of only a handful of companies to obtain a license to become a credit reference agency in the UK in the last ten years.
The latest round of funding was led by Blackfinch Ventures, with continued participation from Oxford Capital, Bethnal Green Ventures and domain-specific angel investors including Alastair Douglas, former CEO of TotallyMoney.
The investment will support Noggin HQ as it moves from successful pilots into wider market adoption.
The firm previously raised £710k in pre-seed funding led by Oxford Capital, with support from Bethnal Green Ventures and other investors.
Founded by childhood friends Evangeline Atkinson and Laura Mills, the company was created after both founders were declined for credit despite being in full-time work and paying rent and bills.
“The UK credit market has changed,” says Atkinson. “Consumers earn, spend and borrow in more complex ways than ever before, but much of the credit referencing infrastructure still reflects an older economy.
“Now that we’re an authorised credit reference agency, we’re energised to be supporting more nuanced credit checks for the consumers the system has historically underserved.”
