We Have Acquired Credit Fintech, Pillar

Breaking Down Financial Barriers

The acquisition comes when many immigrants in the UK struggle to build credit histories or access basic financial services. And with the current economic climate, it’s even harder, according to research, only 1 in 10 immigrants say getting credit hasn’t become more difficult. On top of that, reports show that around 13% of migrants are excluded from banking, compared to just 3% of the general UK population.

The Credit Invisibility Problem

A familiar feeling for many immigrants, moving into a new country, is being “Credit Invisible”.
That’s when your credit history from back home doesn’t follow you to your new country, no matter how solid your financial profile is.

Approximately 5 million "credit invisible" individuals in the UK struggle to access mainstream financial services. Immigrants, especially from the world’s emerging markets, pay the cost of inequitable access as a result of the unique challenges they face:

• Lack of UK credit history upon arrival.
• Limited recognition of credit histories from their home countries.
• Documentation issues related to immigration status.
• Language barriers and a lack of information about the UK banking system.

Ashutosh, our VP of Credit, who moved from India to the UK, knows this story all too well:
“I couldn’t access any of the everyday (financial) products I had in India. Despite arriving and earning a good salary at Barclays, I couldn’t even get an iPhone!”

While there have been slight improvements, the problem's core remains.

“Immigrants are always dealt a bad hand, especially if they’re coming from emerging markets - we need equitable access to credit for everyone. When the world is busy building an interplanetary life, we still can’t offer a bank account or credit card to someone from another country!” he adds. "With Pillar, LemFi will increase its reach by 10X and build truly global access to credit."

That’s exactly why Pillar was founded: to build a credit platform for immigrants. In 2022, they raised £13 million ($16.9 million) to tackle this head-on.
With LemFi and Pillar working together, we’re on a mission to change that story.

A Full-Stack Financial Services Future

This acquisition is the next step in LemFi’s mission to make financial services better for immigrants.

LemFi’s co-founder and CEO, Ridwan Olalere, says, “We have long stated our vision of building a full-stack financial service for immigrants everywhere. Credit marks the next frontier for us in this journey. Rian and I are particularly pleased that Adam and Ash have agreed to join us in building it.”

Before the acquisition, we launched LemFi Credit, and it is already helping customers build their credit inside the LemFi app.

In just six weeks of launching LemFi Credit, over 8,000 people have joined our private beta, with the service growing by 18% every week. Depending on their credit profile, customers can access limits of £300, £700, or £1,000. They also get a Virtual Card to spend online and can easily add it to Apple Pay or Google Pay.

And now, with this acquisition, we’ll soon roll out credit cards, starting in the UK.

How LemFi's Credit Cards Could Change the Game

With more people moving to the UK after the pandemic, the need for fair and accessible financial services has never been greater. That’s where LemFi’s upcoming credit cards come in. Powered by Pillar’s technology, they’ll be designed specifically for immigrants to:

• Recognise international credit histories: Immigrants can "import" their credit standing from their home countries.
• Provide alternative credit assessment: We’ll look at more than just your UK financial records to assess your creditworthiness.
• Offer graduated credit building: Start with a small, manageable credit limit. As you build trust by using it responsibly, your limit increases over time, helping you grow your credit.
• Send money and build credit: Immigrants could build credit while sending money home.

For the millions of immigrants in the UK struggling to build credit histories, the development could be the key to unlocking access to better financial products and opportunities.