Aire, Credit Assessment Service provider raises $11M

by megan jones in funding on 6th February 2019

Aire is founded in the year 2014 by Aneesh Varma, Srini Sundaram, Jon Bundy, with its headquarters located in London, England, UK. It provides Credit Assessment Services to people. It is regulated and Authorized by FCA to grant Credit References. Credit decisions can be improved by using proper context. Aire invites and knows its customers and provides them with various chances for Credit. The mission of Aire is to change things for a better world with its credit opportunities. When people cannot reach the basic requirements of Traditional Credit Bureaus, opportunities are created for them by Aire. Most of the borrowers are frustrated because of the shortage of clarity in decision making. Aire is an antidote to this type of frustration because the credit analysis is not made by scraping social media.

Funding – Series B

Recently, in the series B funding round, Aire has raised $11M with Crane Venture Partners as lead investor and contribution from other investors like   White Star Capital, Experian, Sunstone Partner, and Orange digital ventures. The newly raised funds will be utilized as the additional capital in supporting Rapid Growth of the organization as well as expansion in the US. Aire also announced its future steps like increasing the investment in technology to power its Credit insights engine.

How does Aire work

Credit scoring is made by evaluating the past behavior of the borrower. But for customers with no credit history, Aire predicts their future behavior and inform any lending decisions. Aire’s API interacts with the customer’s platform and provide virtual interviews. It creates personalized credit scores by using machine learning based on things like Career and Lifestyle, Financial Maturity.

  1. Orthogonality: The results of Aire are orthogonal to any other traditional Credit Bureau Data. This helps in improving the overall credit scorecard performance of the lender. And this orthogonal result adds notable Credit Risk Differentiation towards homogenous cohorts.
  2. Performance: A range of advanced technologies like Interactive virtual interview, data referencing, and extensive financial analytics are brought together with Aire. All these technologies serve a vital performance gain over the traditional Credit Bureaus. When all these technologies are combined, the effect shows a gain of 12-14% increase in Credit Acceptance Rates.
  3. Stability: The attitude of underwriters and data scientists who work for Aire’s Model governance is Presume nothing and investigate everything. With that principle, the risk model can yield credible, consistent results and can be free from any Artificial bias.

The process followed by Aire

With the help of Aire, Credit Acceptance can be increased by 14% without any increase in Risk Appetite.

  • Interview: Aire schedules and conducts an Interactive interview with the applicant whose initial Credit Check yields insufficient data.
  • Evaluation: A series of measured questions are shoot on the applicant to gain the complete information on the applicant’s profession, lifestyle, and Financial situation in a 3D view.
  • Score: Aire follows an algorithm which provides packages and even calculates the scores with all the required information on how to make an unaffected and safe credit decision.
  • Make decisions better with Open Banking: Real-time API interactions with open banking gives its customers an effective way to interact. This gives more context and drives to better decisions. Based on the automatically classified Transaction data, insights are built. These are helpful for the lenders to asses’ series of dimensions that includes indebtedness and affordability which in turn leads to better outcomes.

Conclusion

Aire always looks for a better world. The primary moto of Aire is to reach people who cannot reach for credit and to create a new opportunity for them and provide credits for them. It conducts an Interactive virtual interview with people and helps the lenders with information like creditworthiness of customers by raising unconscious biases and by adding nuance to the credit applications. Hence it is reachable to lenders and ensures credit to every person.

 

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