London-based fintech startup Teal has secured £1.4 million in pre-seed funding, with Passion Capital leading the round. Teal provides real-time payroll data to lenders, aiming to modernize credit decision-making by replacing outdated scoring models with live, accurate income insights.
Co-founder and CEO Michael Hart emphasized that traditional credit scoring systems often miss the mark for both lenders and borrowers. Teal’s platform allows users to securely share payroll data, unlocking more personalized and accessible credit opportunities.
The company is partnering with payroll and human capital management (HCM) providers to offer lenders automated income verification, streamlined underwriting, and ongoing employment checks. Its modular API architecture makes it easy to integrate with existing systems, offering lenders speed and customization.
Looking ahead, Teal plans to expand beyond payroll, incorporating diverse income and financial data sources to support the full credit lifecycle—from loan origination to repayment—using AI-driven tools to enhance accuracy and efficiency.
Passion Capital partner Will Orde called Teal’s infrastructure foundational for the next wave of fintech innovation, driven by source-level payroll intelligence.