DirectID has completed a $3 million bridge funding round led by Hong Kong-based venture capital firm, QBN Capital.

The investment boost follows an exciting period for the Edinburgh-based fintech, which has doubled headcount and revenue over the last year.

According to DirectID, the funding boost will enable the firm to expand internationally and pursue ambitious growth plans.

Commenting on the investment, DirectID founder and CEO, James Varga, said: “We are very excited to have QBN being our lead investor. This funding step will help us grow into more markets and sectors as open banking adoption grows across the world.

“We are addressing a global pain with our product, redefining credit risk for consumers and businesses alike.”

Through its credit & risk platform, DirectID offers lenders and financial institutions a more comprehensive view of applicants and customers finances across the credit lifecycle, providing a more precise view of credit risk and to make faster, more accurate and personalised decisions.

Credit decisions are traditionally based on historic transactions, which are obtained from Credit Reference Agencies, or on self-declared information provided by the consumer. However, these information sources are often out-of-date and only provide a partial view of the customer’s credit history or current financial health.

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The broad adoption of PSD2 and open banking in Europe has paved the way for the development of new, innovative services based on bank data, which DirectID has capitalised on. The firm has grown rapidly in recent years and now boasts over 13,000 bank connections globally, giving it access to more than 1.5bn users across 45 countries.

Philea Chim, Senior Vice President at QBN Capital said: “We look forward to helping DirectID expand their business to Asia.

“Their credit risk platform will make SME financing fairer and more accessible. We see synergies between DirectID and a number of our portfolio companies and QBN’s own initiatives, for example, in supply chain trade finance.”

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