Keebo, a new credit card designed to offer improved access to credit, is one step closer to launch thanks to a 5m seed equity round led by Breega and Connect Ventures. The new credit card product, slated for an October launch, is currently in the waitlist stage, with U.K. residents able to request early access.
Keebo Card Seeks to Improve Access to Credit for Millions in the U.K.
According to Keebo, its new Keebo credit card differs from others because it focuses on an applicant’s entire financial well-being – not just their credit score. The Keebo scoring model uses a variety of information, from credit scores to banking history, to better understand a Keebo Card applicant’s creditworthiness.
In many regards, the Keebo Card appears to be the U.K.’s answer to the Tomo Card. The Tomo Credit Card is a credit builder card that features no fees of any kind, basic cash back rewards, and no credit check to apply. The card is tied to a user’s bank accounts, allowing for dynamic credit limits and no credit check. The credit scoring model with Keebo is flexible, meaning credit limits can change over time as the cardholder’s banking accounts grow (or shrink).
Is Open Banking the Future of Credit?
Keebo is currently the only U.K. credit card provider authorized by the Financial Conduct Authority (FCA) to use open-banking data for underwriting purposes on credit cards and loans. This FCA approval means that Keebo does not require a partner bank to issuer credit cards, instead being able to loan money and charge interest when the sum borrowed is not repaid within the agreed-upon time.
Open banking is quickly gaining traction overseas, with the U.K. and European Union being early adopters of the process. Open banking differs from traditional banks in that it allows customers to share their financial history and data from existing bank accounts to other companies. This process creates greater availability of lending products, including credit cards, like Keebo.
“Access to safe and affordable credit should not be biased, yet today we see this happening time and time again, driving many to approach options which can put their financial future at significant risk,” said Ben Martin, Co-Founder and Managing Partner at Breega. “The solution that Keebo offers and the methods and technology it uses to provide a real solution to this issue. We’re truly delighted to be accompanying and supporting the team on this very new and exciting venture”.
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Featured image by keebo
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