MUFG Innovation Partners invested in Lendbuzz
MUFG Innovation Partners invested in Lendbuzz – an AI-based auto finance platform providing auto loans to individuals with thin or no credit history in the United States
June 23, 2021 – MUFG Innovation Partners Co., Ltd. (MUIP), a corporate venture capital fund and a wholly-owned subsidiary of MUFG, the leading global financial group of Japan, recently invested in Lendbuzz, Inc. (Lendbuzz) – an AI-based auto finance platform providing auto loans to individuals currently underserved by the traditional credit system due to having a thin or no credit history in the United States. The company is modernizing the loan origination process by providing end-to-end loan origination and servicing platform that fits into existing financing and insurance workflows of auto dealerships and enabling a seamless, digital experience for buyers.
Lendbuzz’s underwriting model – powered by machine learning and proprietary algorithms – allows it to better assess the risk of creditworthy consumers who are underserved by traditional scoring model. Compared to legacy underwriting systems that are based on FICO scoring and often utilize just a handful of data points, Lendbuzz analyzes thousands of data points – from the transaction and spending patterns to education and employment history – to better and more fairly evaluate applicants. Auto dealerships, in turn, are able to close additional business opportunities that otherwise would have been lost, and offer a frictionless and 100% paperless customer experience that enables real-time approval and faster funding.
Through the investment, MUIP would support Lendbuzz’s business growth and international expansion, and strategic partnership with Mitsubishi UFJ Financial Group.
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with around 3,000 locations in more than 50 countries. The Group has over 180,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english
Lendbuzz, Inc. is an AI-based auto finance platform that helps consumers with thin or no credit history obtain financing when purchasing a car. Powered by machine learning and proprietary algorithms, Lendbuzz is able to better assess the creditworthiness of consumers with limited credit history, who are underserved by the traditional banks. By partnering with auto dealerships, Lendbuzz is able to offer consumers attractive financing solutions and dealerships are able to close additional business opportunities and serve a more diversified client base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.
For more information on how Lendbuzz is transforming the auto finance experience visit www.lendbuzz.com.