ClearScore secures £30 million in debt financing to accelerate global expansion

ClearScore, a UK-based fintech company specializing in credit scoring and financial product recommendations, has secured £30 million in debt financing from HSBC Innovation Banking UK.

The funding, announced in February 2025, will support ClearScore’s continued expansion in both domestic and international markets, reinforcing its mission to improve financial well-being for millions of users.

The deal also extends a long-standing relationship between the fintech firm and HSBC Innovation Banking, which has backed its growth since 2017.

ClearScore, founded in 2015 by Justin Basini, Nigel Morris, and Dan Cobley, provides free credit scores and tailored financial product recommendations to consumers. The company connects users with credit cards, loans, and other financial services by leveraging data-driven insights.

Since its launch, ClearScore has expanded beyond credit scoring to develop innovative marketplaces such as DriveScore, which rewards responsible driving with better financial offers, and D•One, an open banking service that optimizes financial product matching.

A key driver of this latest financing is ClearScore’s ambitious M&A strategy. In 2024, the company acquired Aro Finance, a Manchester-based credit marketplace supplier, marking its entry into embedded finance—a growing sector that integrates financial services directly into non-financial platforms.

This move strengthens ClearScore’s secured loan offerings and aligns with its broader vision of seamless financial product integration into consumer decision-making.

“As a profitable fintech operating at a global scale, we’re in a strong position to decide how to invest for the next decade of growth,” said Brian Cole, Chief Financial Officer at ClearScore Group. “This funding allows us to expand our product range and distribution channels, ensuring we continue to provide the right financial solutions to users at the right time.”

ClearScore operates in a highly competitive market, where fintech firms are increasingly integrating artificial intelligence, open banking, and embedded finance to differentiate their offerings.

Rival companies such as Credit Karma (owned by Intuit), Experian, and Equifax have also expanded into personalized financial product recommendations, driving innovation and competition in the sector.

The global embedded finance market is projected to grow from $66 billion in 2023 to over $138 billion by 2028, according to CB Insights. By embedding financial services within other digital platforms, firms like ClearScore are positioning themselves to capture a larger share of this expanding market.

The acquisition of Aro Finance underscores ClearScore’s intent to diversify its revenue streams and solidify its role as a key player in the fintech ecosystem.

HSBC Innovation Banking UK, which has supported ClearScore since 2017, views the company as a prime example of a high-growth fintech leveraging technology to drive financial inclusion.

“ClearScore has been a valued long-term partner, and we’re thrilled to support their expansion with this latest financing,” said Nick Conway, Director of FinTech Coverage at HSBC Innovation Banking UK. “This is a great example of how we help UK fintech firms scale and build innovation-driven businesses.”

Despite its growth trajectory, ClearScore faces challenges typical of the fintech sector. Regulatory scrutiny around consumer data usage, open banking, and credit reporting is intensifying, particularly in markets like the UK and EU.

In 2024, the Financial Conduct Authority (FCA) proposed stricter regulations on fintech firms offering financial product recommendations, aiming to ensure transparency and prevent conflicts of interest. Compliance with evolving regulations will be crucial for ClearScore’s continued expansion.

Another challenge is the rising cost of capital. While ClearScore’s profitability gives it a competitive edge, many fintech firms have struggled with funding constraints amid higher interest rates and investor caution.

Debt financing, such as this £30 million facility, has become an increasingly popular alternative to equity raises, allowing fintech firms to scale without immediate dilution of ownership.

Looking ahead, ClearScore’s ability to expand its product ecosystem, integrate embedded finance solutions, and navigate regulatory shifts will determine its long-term success.

With 24 million users and partnerships with over 160 financial institutions, the company is well-positioned to capitalize on the growing demand for personalized financial solutions.

As fintech competition intensifies and consumer expectations for seamless financial services rise, ClearScore’s latest funding round signals a broader industry trend: the push towards deeper integration of financial services into everyday digital experiences.

If executed effectively, ClearScore’s strategy could set a precedent for how fintech firms evolve in the next decade.