Infact Systems, a UK startup looking to build a digital 'real-time credit bureau', has raised £4 million from investors including Albion Capital after gaining regulatory authorisation in the UK.
The Financial Conduct Authority approved the Clerkenwell-based company as a credit reference agency earlier this year, it said, confirming it as an upstart rival to Experian (LSE:EXPN).
Infact was set up by Will Mason and Andy Milligan, who were previously involved in fintech Runpath, which was acquired by Experian (LSE:EXPN) in 2017 to improve its ability to aggregate its data with external sources such as price comparison websites.
Mason and Milligan said in a blog post that the funding will be used to accelerate the expansion of its bureau database and to extend its range of products, which it says help challenger lenders and banks "reset the scales when it comes to credit".
"Legacy bureaus have struggled to keep pace with the rapid evolution of consumer credit preferences, particularly as individuals gravitate towards lower value, high-velocity, transactional products."
The company says credit information and affordability decisions used by traditional credit bureaus is by default out-of-date" and so consumers and lenders are both missing out.
Infact says its technological approach, using APIs (application programming interfaces), enables lenders to report and receive consumer credit risk insights in real-time, allowing consumers to build and rehabilitate their credit profiles faster and more safely.
"We saw an opportunity to build something better - a platform that accurately represents modern credit products and consumers in a way existing bureaus simply can't," the blog post said.
AlbionVC led the seed funding round, with investment also coming from 13books Capital, Form Ventures, Outward VC, and Portfolio Ventures, alongside leading angels.
Infact says that since being authorised as a credit reference agency "several" leading UK lenders have helped populate its database and enabled the successful launch of its first product, Affordability Engine.