Finexos: introducing their EIS-eligible investment opportunity
In recent months we have been working closely with Finexos, a company transforming the credit scoring process and today I am delighted to be able to publicly launch their EIS-eligible investment opportunity.
Led by an experienced team who have a wealth of financial services experience amongst them, Finexos are solving a problem that is faced my millions - an inability to access credit (or prime rates of credit) due to the existing credit scoring systems providing an inaccurate representation of their financial capability.
The data Finexos showcase in their Investment Memorandum (accessible via the online pitch page here) highlights how 2 billion people globally are excluded from financial services, and in the UK alone 12 million people are trapped in the high-interest revolving credit trap.
Through the use of the Finexos solution, critical issues such as these can begin to be solved. By providing a more accurate insight into someone’s ability to access credit, the country’s poverty premium can be reduced, helping consumers exit the revolving credit trap. Similarly, millions in repayments could be freed up from unnecessarily high interest rates, supporting the need of the cost of living crisis.
With use cases ranging from consumer and SME bank lending through to utilities companies, commercially the Finexos solution is set to deliver successful outcomes for any provider of credit. Versus legacy credit scores, Finexos can help said providers to achieve:
- 30% reduction in default rate
- 5x more credit originated
- 50% Net Promoter Score (NPS) improvement
Founded by Mark Fisher (who sat on the FCA’s Consumer Vulnerability Workgroup), the team’s experience spans a range of financial services areas and projects, including the launch and design of Hong Kong’s first licenced virtual bank.
Finexos’ CEO, Areiel Wolanow, previously served as one of IBM’s key thought leaders in blockchain, machine learning, and financial inclusion. Importantly, Areiel led the development of the credit scoring engine - upon which Finexos is modelled - which when launched to the Kenyan market via the country’s leading mobile payments provider, M-Pesa, achieved two key milestones:
- Took 2% of the country’s population out of poverty, as the solution could provide they were creditworthy
- Doubled the country’s GDP, as access to credit is the leading contributor to GDP growth
Having a number of Letters of Intent signed and the platform MVP ready to be rolled out with pilot schemes, this £500,000 minimum raise will support the company’s market entry strategy and begin proving the value of their solution.
EIS-eligible, which provides investors with access to a range of tax reliefs to assist with mitigating risk and maximising potential returns - including 30% income tax relief on the value of your investment - you can find full details of the opportunity here.