Noggin HQ raises £2.3m and secures credit referencing authorisation

This news signals a shift in how lenders evaluate your customers' creditworthiness. Noggin HQ has secured £2.3 million and official regulatory authorization to provide alternative credit scoring. For retailers, this is a major development because traditional credit scores often ignore younger shoppers or those with 'thin' credit files. Noggin HQ uses broader data points beyond just bank history to build a clearer picture of a shopper's ability to pay. As a merchant, this technology means higher approval rates at the point of sale without necessarily increasing the risk of defaults. It allows lenders to say 'yes' to customers who were previously invisible to the big credit bureaus. By integrating more nuanced data, financing partners can offer more personalized terms to your shoppers. This technology is particularly relevant if your customer base includes Gen Z or expatriates who lack long-term local credit histories. Expect to see more financing providers adopting these alternative scoring models to capture market share that traditional lenders are missing. This funding round confirms that investors and regulators are betting on data-driven lending to replace old-fashioned credit checks.

Source: Finextra — Lending

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