Teal Secures £1.4 Million in Pre-Series Funding to Transform Payroll Data for Credit Assessments
Teal, an innovative fintech startup based in London, has successfully raised £1.4 million in a pre-series round of financing. The company is on a mission to revolutionize payroll data management within the credit industry, aiming to streamline the loan application process.
Addressing Outdated Processes in Credit Checks
Founded to tackle long-standing inefficiencies in traditional credit checking methods, Teal introduces modern solutions that provide real-time income and employment data. This proactive approach eliminates the reliance on outdated static credit scores and time-consuming manual payroll verifications.
Rethinking Credit Evaluation
Michael Hart, co-founder and managing director of Teal, emphasized the flaws in traditional credit scoring methods. “The conventional credit notation is broken, relying too heavily on outdated processes that do not meet the needs of lenders or borrowers,” he stated. Teal’s model empowers users by allowing them to securely share their income data, thereby enhancing their chances of accessing suitable credit options.
Strong Backing from Investors
The recent funding round was spearheaded by Passion Capital and garnered support from ACF, K Fund investors, and various industry angels, including notable fintech firms like Plaid and Checkout.com. This strong backing underscores the confidence investors have in Teal’s vision and growth potential.
Foundational Technology for Future Fintech Products
Will Orde, a partner at Passion Capital, remarked on the significance of Teal’s payroll infrastructure. “Teal’s pay infrastructure lays the groundwork for a new wave of fintech products, powered by accurate pay data,” he noted. This innovation is precisely what the credit ecosystem needs to evolve and provide more options for consumers.
Expanding Data Integration for Comprehensive Insights
The funds raised will enable Teal to enhance its data infrastructure, extending beyond payroll to include various income and financial sources. This holistic approach aims to offer a more complete and accurate view of borrowers’ financial situations, ultimately benefiting both lenders and borrowers.
Transforming Affordability Measurements
Tim Mills, director partner at ACF Investors, expressed enthusiasm about Teal’s approach to reshaping financial assessments. “By basing credit decisions on verified income data, Teal is redefining how affordability is measured and how loans are repaid,” he stated. This transformative approach is expected to enhance access to credit for a wider audience.