A bevy of venture capital backers have invested $11m in consumer credit fintech startup Ascend Consumer Finance.
Mucker Capital, OCA Ventures, Partech Ventures, Tekton Ventures, Cendana Investments LP, and the venture-focused subsidiary of Securian Financial Group all took part in the raise, while additional funding was provided through the Financial Solutions Lab, managed by the Center for Financial Services Innovation and JPMorgan Chase.
Ascend said it planned to use the funding to further roll out its Adaptive Risk Pricing technology, which aims to let consumers prove their real-time creditworthiness by making sound financial choices.
The company’s first product, RateRewards, allows borrowers to reduce their monthly interest expense up to 50 per cent by displaying positive financial behaviors – which Ascend actively tracks and analyzes – throughout the life of their loan.
Tekton Ventures managing partner Jay Choi said, “We are excited by the potential of what Ascend is doing for underserved consumers with its RateRewards product.
“This innovative lending product represents a much-needed regulatory and consumer-friendly approach that can dramatically improve the financial health of consumers.”
Copyright © 2016 FINTECH GLOBAL
