Aire, a London-based fintech startup, has raised $2 million in new funding, led by White Star Capital with participation from Sunstone Capital and Accion Venture Lab.
The startup has also announced that is now authorised by the UK’s Financial Conduct Authority (FAC), an independent regulator.
Aire has built a machine learning algorithm that generates a credit score for users, particularly for younger customers, the self-employed, or people that have recently moved country, to help them apply for financial services. The startup has partnerships with lenders of personal loans and credit cards.
Aneesh Varma, CEO of Aire, said it believes its technology is a more accurate and fair way to assess someone’s credit score.
“Many of us will end up being mobile or self-employed which the current credit risk-scoring system will have to recognise. What feels like the fringes today will become the norm tomorrow,” he said.
“We believe we have a solution to address this issue, balancing the numerous forces at play across data, ethics, regulation and technology.”
On foot of this new funding and regulatory approval, Aire will continue to seek new lender partnerships as well as hire new data scientists, researchers, and financial industry experts.