German fintech Kreditech has attracted €10 million from International Finance Corporation, part of World Bank Group. Led by J.C. Flowers & Co., Peter Thiel and Amadeus Capital, the round also attracted existing shareholders Värde Partners, Blumberg Capital and HPE Growth Capital.
The funds will be devoted to Kreditech’s Monedo platform, which provides credit and digital banking products to the global underbanked via a combination of traditional data sources and machine learning.
Kreditech offers consumer loans, a digital wallet and a personal finance manager to help people plan spending and manage their credit score. Based in Hamburg Germany, Kreditech has processed close to three million loan applications.
“Most of our customers are not able to obtain credit at traditional banks,” Kredietch CEO and Co-Founder Alexander Grabner-Müller said. “These institutions lack proper credit scoring for this segment and are unable to assess the customer risk.
“Through Kreditech’s technology we can perform a more precise credit rating to offer credit at fair and risk-weighted conditions. With the new funding, we will continue advancing our scoring technology to continuously improve and expand our product offering.”