Fintech startup, Koyo, who used open banking in a bid to offer loans to people have closed its funding with the sum of $4.9 million.

The funding is led by Forward partners, bringing in participators such as Seedcamp. It is pertinent to note that the funding covers both debt and equity funding. Investors teeming in are Christian Faes – founder and CEO of LendInvest as well as founder and CEO of ComplyAdvantage, Charlie Delingpole.

History has it that the company came into existence in the later part of 2018 by Thomas Olszewski, ex-Frontline Ventures VC. The sole aim of Koyo is to offer people with a blank credit history apparently migrants, perhaps those who haven’t had to take any credit or pay bills.

Koyo utilizes open banking data as a means of accessing risk connected with a person’s transaction history.

Olszewski explained that:

“If someone is new to the country or otherwise has a thin credit file it can be difficult for that person to access credit, for example, if you’ve been in the country for a year or two and you’d like to get a personal loan, the types of loans that would be offered to you would be payday loans (1,000%+ APRs) or longer term loans in the 50-99% APR range that may require a guarantor.”

Olszewski made mention that irrespective of the fact that one has no credit history, and is unable to secure a loan from banks, loan providers such as Amigo Loans and a few others will be ready to help.