London-based fintech startup, Aire, has secured $2 million in fresh funding in a round led by White Star Capital, with participation from Sunstone Capital and Accion Venture Lab. The company has also received regulatory approval from the UK’s Financial Conduct Authority (FCA).
Aire has developed a machine learning algorithm that generates credit scores for users, with a focus on those who are self-employed, younger or recently moved to a new country. The technology aims to provide a more accurate and fair way of assessing an individual’s credit score. The company has partnerships with lenders of personal loans and credit cards.
According to Aneesh Varma, the CEO of Aire, the current credit risk-scoring system will need to adapt to recognise the changing nature of work and employment, with more people moving towards self-employment or mobile work. The company’s solution aims to balance the various factors at play across data, ethics, regulation and technology.
With the new funding and regulatory approval, Aire plans to expand its partnerships with lenders and hire new experts in data science, research and the financial industry.
