Profits soar at AI lending fintech Abound as borrowers turn away from traditional banks

Abound, one of London’s fastest-rising fintech stars, has posted a 25-fold surge in profits as borrowers increasingly turn to its AI-powered loans platform over traditional lenders.

In the 12 months to February, the startup reported net profits of £7.5 million, up from just £300,000 the previous year. Revenues jumped 151% to £66.8 million, driven by growth in both its direct-to-consumer lending arm and its B2B technology offering.

Founded in 2020 by Michelle He, formerly of EY, and Gerald Chappell, a former McKinsey partner, Abound uses artificial intelligence to assess affordability. Instead of relying on traditional credit scores, it analyses customers’ bank transaction data to determine what they can reasonably repay.

The company focuses on borrowers often underserved by high street banks and also licenses its proprietary AI engine, Render, to other lenders across Europe.

Chappell said the company’s rapid growth demonstrated that “our technological shake-up of the lending sector is not only commercially viable but scalable.”

He added: “With structurally higher interest rates and sluggish economic growth, traditional credit models are under pressure. We’re proving that AI-driven affordability assessments can offer both better customer outcomes and robust profitability.”

Abound has now provided over £900 million in loans and secured £1.6 billion in debt funding from global institutions including Citi, Deutsche Bank and Waterfall Asset Management. Backers also include Silicon Valley firm Informed Ventures and West Coast Capital, the investment vehicle of Scottish billionaire Sir Tom Hunter.

The company’s latest results will be seen as a bright spot for the UK’s fintech scene, which was shaken last month by the announcement that payments giant Wise plans to move its primary listing to New York.

As fintechs mature, investors are increasingly demanding sustainable profits — and Abound’s pivot to profitability at scale is likely to boost its standing as a leader in AI-powered consumer finance.

The company’s focus on automation and affordability may also place it firmly in the sights of traditional lenders looking to modernise their own credit operations — or potential acquirers seeking access to proven AI infrastructure.

Read more:
Profits soar at AI lending fintech Abound as borrowers turn away from traditional banks