In a significant move for the financial services sector, challenger credit bureau Infact has successfully raised £4 million in a Seed funding round, buoyed by the recent authorization from the Financial Conduct Authority (FCA). This funding aims to develop a real-time credit bureau tailored for the evolving digital financial landscape.
Led by AlbionVC, with contributions from 13books Capital, Outward VC, Form Ventures, and Portfolio Ventures, the investment is set to enhance Infact’s database and expand its product offerings. The initiative is designed to empower lending partners to achieve better consumer outcomes while addressing the limitations of traditional credit reference agencies.
Infact is focused on tackling the shortcomings of legacy systems that have struggled to adapt to changing consumer credit needs, particularly as borrowers increasingly gravitate toward lower-value, high-frequency transactions. Its innovative platform allows lenders to report and access real-time consumer credit insights via an API, enhancing credit risk assessments and enabling consumers to build and rehabilitate their credit profiles more effectively.
At the helm of Infact are co-founders Will Mason and Andy Milligan, both former executives at Runpath, which was later acquired by Experian. Their diverse backgrounds, encompassing roles at major financial institutions like NatWest, TSB, Metro Bank, and Visa, position them uniquely to drive innovation in this sector.
Mason expressed confidence in their mission, stating, “Legacy bureaus have done a bad job innovating in their core business and have instead chosen to innovate around the edges. We are excited to build a challenger bureau that supports today’s lenders by treating their consumers as people with rich and varied financial lives.” This vision reflects a commitment to enhancing consumer experience in credit assessment.
Infact’s initial success since receiving FCA authorization includes collaborations with several prominent UK lenders to enrich its bureau database and the launch of its first product, the Affordability Engine.
Editorial Opinion
The emergence of Infact marks a pivotal shift in the credit referencing landscape, especially in an era where consumer behavior is rapidly evolving. With an adept leadership team and a clear focus on technological advancement, Infact is well-positioned to address the pressing issues that have long plagued legacy credit bureaus. The emphasis on real-time data access and consumer-centric solutions could redefine how creditworthiness is assessed, ultimately fostering greater financial inclusion.
Moreover, the strategic backing from notable investors demonstrates a strong belief in Infact’s vision and operational model. As the fintech industry continues to thrive, Infact’s commitment to innovation could serve as a blueprint for future developments in credit referencing, leading to enhanced outcomes for both lenders and consumers.
The potential for Infact to influence the broader financial services ecosystem is immense, especially as it aims to not just compete with but transform the conventional paradigms of credit assessment. By prioritizing consumer insights and leveraging technology, Infact is poised to lead a new wave of responsible lending practices.
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