Newcastle-based fintech Noggin HQ has successfully secured £2.3 million in an oversubscribed seed funding round, coinciding with its official launch into the UK market. The company has also obtained crucial credit referencing authorisation from the Financial Conduct Authority (FCA). This dual achievement positions Noggin HQ to introduce its innovative cashflow-based credit scoring technology to lenders nationwide, aiming to serve millions of underserved consumers.
Challenging the Credit Status Quo
Noggin HQ's entry marks a significant disruption in a sector long dominated by a few major players. By securing its FCA license, the firm becomes one of only a handful of new credit reference agencies authorised in the UK over the past decade. This regulatory approval is the highest barrier to entry in the industry, enabling the company to directly challenge the established "Big Three" bureaus.
The company's mission is to address the needs of the 3.2 million UK adults who were declined credit in the two years leading up to May 2024. Traditional credit scoring models often penalise individuals with thin credit files, irregular incomes, or those new to the country. Noggin HQ aims to provide a more equitable system by offering a nuanced view of an applicant's financial stability.
Innovative Technology and Open Banking
At the core of Noggin HQ's solution is the use of permissioned banking transaction data, facilitated by open banking. This technology allows the platform to analyze real-time cashflow rather than relying solely on static, historical credit records. By assessing current income and expenditure patterns, lenders can gain a more accurate and timely understanding of a consumer's ability to manage debt.
Substantial Financial Backing
The £2.3 million funding round was led by Blackfinch Ventures, with continued support from existing investors Oxford Capital and Bethnal Green Ventures. The round also attracted domain-specific angel investors, including Alastair Douglas, the former CEO of TotallyMoney, bringing valuable industry expertise. This investment follows a previous pre-seed raise of £710,000 and will be used to scale operations from successful pilots to wider market adoption.
A Mission Born from Personal Experience
The company was founded by childhood friends Evangeline Atkinson and Laura Mills, who were inspired by their own frustrations with the credit system. Despite being in full-time employment and consistently paying their bills, both founders were declined for credit, exposing the flaws in traditional assessment methods. This personal experience fuels their commitment to creating a more inclusive financial system for consumers historically underserved by legacy infrastructure.
Co-founder Evangeline Atkinson highlighted the evolution of the UK credit market, stating that consumer financial behaviours are more complex than ever before. She emphasized that much of the existing credit referencing infrastructure reflects an older, less dynamic economy. With its new authorisation, Noggin HQ is energized to support more nuanced credit checks for a modern consumer base.
Noggin HQ's successful funding and regulatory approval signal a pivotal moment for the UK's credit referencing industry. The company's launch not only introduces a powerful alternative for lenders but also puts pressure on the market to adopt more modern, data-driven underwriting practices. This development represents a significant step towards a more transparent and equitable credit landscape for millions of consumers.