The company intends to use the new financing facility to offer personal loans to people who had a limited credit history but have a strong current income and a financial outlook
QuadFi offers loans to underserved credit groups. (Credit: PiggyBank on Unsplash)
Canadian online lender QuadFi has signed an agreement with US-based private credit manager Crayhill Capital Management to secure a new financing facility of up to C$127m ($100m).
The company intends to use the new financing facility to offer personal loans to people who had limited credit history but have a strong current income and a financial outlook.
According to QuadFi, traditional risk rating models consider only historical behaviour and income of customers, which leads to inequality in access to financial products for all groups.
Its novel and adaptive underwriting model has been designed to be forward-looking and considers a customer’s future income and career path, said the company.
The advanced data-driven approach is said to benefit customers with thin credit history but promising prospects, particularly newcomers, youngsters, and immigrants.
In addition, the company allows immigrants to benefit from its offering by using their financial history from their home country, even after having left.
QuadFi co-founder and CEO Manny Nikjoo said: “Our model incorporates credit data from their home countries, alternative data and open banking to provide accurate underwriting and deliver financial inclusion today.
“This partnership allows us to take a big step toward achieving our long-term pursuit of fostering financial inclusion and helping our customers, who are young, ambitious and educated, achieve the financial access they deserve.
“Crayhill understands our objectives, and now we have the runway to accelerate our growth, which will have benefits for our customers, investors, and communities.”
Crayhill Capital Management managing director Sloan Sutta said: “We are incredibly excited to partner with QuadFi and support their mission-driven growth.
“We believe that their cutting-edge technology and business model will enable them to deliver value to investors, clients and stakeholders across the economy.”
Established in 2018, QuadFi is focused on providing underserved credit groups with access to fair and affordable financial products.
It leverages data science to address outdated, biased, inaccurate underwriting, by combining alternative data from domestic and international sources with unique AI/ML models.
The company focuses on the intersection of global migration, financial data, and personal data, to identify opportunities that can address financial exclusion.