Expanding Credit Offerings for Immigrants
With this acquisition, LemFi aims to launch specialized credit cards tailored for immigrants to address persistent barriers in the UK’s financial inclusion movement. Pillar had raised GBP 13 million during its pre-seed funding round to develop a platform that enables immigrants to access credit products when they move to a new country. This technology will be integrated into LemFi, making it a remittance platform with credit as one of its core offerings.
Moving to a new country often results in migrants being “credit invisible,” meaning their previous financial profile no longer applies. Approximately 5 million such individuals struggle to access financial services in the UK due to challenges like limited recognition of credit history, documentation issues, language barriers, and an unfamiliar banking system.
Supporting Migrant Communities
The acquisition by LemFi is aimed at tackling these issues. According to a Credit-Connect study, just 10% of immigrants believe access to credit has not become harder in the current economy, and banking reports estimate that 13% of newcomers are excluded compared to 3% of the general UK population. In the UK alone, net migration exceeded 700,000 people in 2022.
LemFi’s goal is to build a full-stack financial service for migrants worldwide, and credit is part of this journey. Through Lemfi Credit, customers can grow their credit through an easy-to-use app. Since its launch, Lemfi Credit has seen weekly growth of 18%, offering customers the opportunity to get up to GBP 300, GBP 700, or GBP 1000 based on their credit profile. Users also receive a virtual card for online spending, which can be added to Apple Pay or Google Pay wallets.
The Lemfi credit cards will leverage Pillar’s technology to recognize international credit histories, offer alternative credit assessments, provide graduated credit building, and integrate with remittance services. The deal has been approved by the FCA and sees Pillar’s founders joining LemFi’s team.