Koyo Raises $4.9M in Equity and Debt to Utilize Open Banking to Provide Loans to People with Thin Credit Files

A fintech startup firm named Koyo is using the open baking to provide loans to the people who are with thin credit files. Furthermore, they are also offering loans to the people who are served poorly by the market. Koyo has closed a funding of $4.9 million. The round of equity and debt funding is guided by Forward Partners. Without this, there are other investors like Charlie Delingpole (Founder and CEO of the ComplyAdvantage) and Christian Faes (Founder and CEO of the LendInvest). Koyo was founded by Thomas Olszewski, the VC of ex-Frontline Ventures in the late 2018. It is now attempting to handle the problem that drives the people to face a tragic credit history.

By using this open banking data to assess the risks which are based on the transaction history of an individual, Koyo thinks that it can also offer something which is lot more than competitive. Thomas Olszewski said that if somebody was new to the country or had a thinner credit file that could be hard for the person to get the credit such as it a person had been in a country for around a year or perhaps two, then the person would like to get a loan, and the types of these loans which would have been offered to the person would have become by payday loans. The reason is the lack of proper information and knowledge in the credit file. He added that they estimated that around 15-20% of the population were not captured by the data of bureau.

Show More

Shahina Khatun

Shahina is a Web Developer, Content Writer, SEO Expert and Social Media Marketer.
Back to top button