Fintech startup LemFi wants to use international credit data to help immigrants in the UK access financial services and has acquired UK-based company Pillar.
Driving the news
LemFi is working with UK-based Pillar to collect credit histories from other countries to assess the creditworthiness of new UK arrivals, a demographic that typically has to start from scratch when applying for loans or credit cards.
Why it matters
Many migrants arrive in the UK with years of responsible borrowing history — but can’t use it. Without access to traditional credit scores, they face high interest rates, rejections, or financial exclusion.
Catch up quick:
- Pillar’s tech helps LemFi tap into overseas credit histories.
- This challenges the long-standing practice that “credit scores don’t cross borders.”
- Data protection laws, particularly under the UK’s GDPR regime, tightly restrict cross-border data flows — especially sensitive data like financial records.
Yes, but
UK regulators are likely to scrutinize whether LemFi’s use of foreign credit data complies with privacy laws, including user consent and data sovereignty issues.
What’s next
If LemFi and Pillar can navigate the legal grey areas, they may unlock a fairer system for migrants — but failing to do so could invite fines, bans, or forced changes to their data practices.
Source: Semafor
