London-based AI credit firm Abound has secured €299.8 million in financing from Deutsche Bank, boosting its total lending capacity to €1.9 billion and enhancing fairer credit access for UK borrowers.
London-based AI-powered credit technology firm Abound has secured up to €299.8 million in financing from Deutsche Bank, announced on March 28, 2025. This funding increases Abound’s total lending capacity to €1.9 billion, enabling the company to offer more affordable credit to UK borrowers through its AI and Open Banking-based assessment model.
Deutsche Bank backs AI-driven lending
Abound, a London-based fintech specializing in AI-powered credit assessments, has secured €299.8 million in financing from Deutsche Bank. The deal, announced on March 28, 2025, marks a significant step in the bank’s €1.2 billion fintech partnership program for 2025, as reported by the Financial Times.
The funding raises Abound’s total lending capacity to €1.9 billion, allowing the company to expand its services to more UK borrowers. Abound uses Open Banking data and proprietary AI models to assess creditworthiness, particularly for borrowers with limited credit history.
Growing demand for alternative lending
This financing comes as UK fintech lending volumes grew 18% year-over-year in Q1 2025, according to UK Finance. The surge reflects increasing consumer adoption of AI-driven credit solutions that promise fairer assessments than traditional scoring methods.
Abound claims its AI model reduces default rates by 22% compared to conventional credit scoring, as detailed in its March 2025 whitepaper. The company targets borrowers underserved by traditional banks, leveraging the UK’s Open Banking infrastructure which surpassed 7 million users in February 2025.
Industry shifts toward AI credit solutions
The deal positions Abound among competitors like Zopa and Clearpay that are also expanding AI-based credit offerings. Deutsche Bank’s investment signals growing institutional confidence in AI’s potential to transform consumer lending.
As Open Banking adoption continues to rise, analysts predict further disruption in the credit sector, with AI-enabled lenders potentially capturing significant market share from traditional institutions over the next decade.
