Specialized Credit Cards for Immigrants
Following this acquisition, LemFi aims to launch tailored credit cards specifically designed for immigrants. This move is part of its broader efforts to address the ongoing challenge of financial inclusion in the UK. Pillar had previously raised GBP 13 million during its pre-seed funding round, with the goal of creating a platform that helps immigrants access various credit products upon relocating to new countries.
Supporting the UK’s Migrant Community
Moving to a new country often means starting from scratch when it comes to financial services. Immigrants typically lose their existing credit history, making it difficult for them to gain initial trust with local banks and lenders. Approximately 5 million individuals in the UK face such challenges, struggling with issues like limited recognition of past credit profiles, documentation obstacles, language barriers, and a lack of familiarity with the local banking system.
Building a Comprehensive Financial Service
To tackle these issues, LemFi has acquired Pillar. According to Credit-Connect research, only 10% of immigrants believe access to credit has not become harder in recent times. A report by banking experts states that approximately 13% of new arrivals are excluded from financial services compared to 3% of the general UK population. Net migration figures indicate that over 700,000 people moved into the UK in 2022.
LemFi’s objective is to provide a comprehensive financial service for immigrants worldwide, with credit being a key component. Through its Lemfi Credit offering, customers can enhance their credit scores through an intuitive app. Since its launch, Lemfi Credit usage has grown by 18% weekly, enabling users to apply for up to GBP 300, GBP 700, or GBP 1000 depending on their credit profile. Users also receive a virtual card that can be used online and integrated into Apple Pay or Google Pay wallets.
Levelling the Credit Playing Field
The Lemfi credit cards will utilize Pillar’s technology to recognize international credit histories, offer alternative credit assessments, provide graduated credit building opportunities, and integrate with remittance services. This integration marks a significant step towards making financial services more accessible and inclusive for immigrants.
