British digital consumer lender Fintern has secured $44.1m (£32m) in equity and debt financing to improve access to affordable loans.

Several angels, including fintech founders and business leaders, contributed to the equity funding. Hamburg-based fintech financier Varengold Bank will offer the debt funding.

Using the infusion, London-based Fintern plans to embark on its goal to offer £1bn of consumer loans by 2025.

The ultimate aim is to provide access to affordable loans and enable consumers to evade debt spirals.

Varengold London Branch head Alison Harwood said: “This is another example of Varengold’s wider mission to support fintechs across Europe in providing innovative, customer-centric lending products.

“Both Varengold and Fintern are passionate about changing the consumer lending landscape in the UK and we’re excited to be working together towards that goal.”

At present, Fintern provides loans ranging between £500 and £5,000 for a maximum of three years with a variable APR of 18.8%.

Both iOS and Android users can download the Fintern app, link their bank account and choose their required borrowing amount for making a loan application.

Fintern approves a loan by assessing customers’ transaction data, through open banking and AI technology.

In this regard, various aspects are factored in such as incomings, outgoings, current repayments and repayment history.

Established in 2020, Fintern is regulated by the Financial Conduct Authority.

Fintern CEO and co-founder Gerald Chappell said: “This fundraising puts Fintern in a strong position to deliver on our mission to increase access to affordable personal credit.

“Our distinctive data driven approach to lending allows us to bypass credit scores, increase approval rates and lower APRs.”

Recently, open banking platform TrueLayer – also based in the UK – secured $70m in fresh funding through a Series D investment round.