Argyle Secures $55M Series B to Make User-Permitted Employment Data Pervasive and Reinvent Lending Decisions for Lenders and Consumers
NEW YORK–(BUSINESS WIRE)–argylethe leading employment data platform that provides companies with real-time access to user-authorized employment records, today announced its $55 million Series B. The round was led by SignalFire with participation from current investors such as Bain Capital Ventures, Bedrock and Checkr. to Argyles $22.6 million in prior fundingthe additional capital injection will be used to accelerate the growth of the in-house engineering team, fuel international expansion and scale the company’s go-to-market.
Argyle’s rapidly expanding coverage includes over 500,000 US employers, including 60% of the Fortune 500, nearly 100% of gig workers and over 170 million US employees. Driven by today’s rapidly changing work landscape, Argyle is setting a new standard for credit risk assessment. It opens the door to broader financial access for all consumers by addressing identity, employment and income verification in a holistic and equitable manner.
“The meteoric rise of contractors, gig workers, and the creator economy requires a new infrastructure for financial data. Argyle reinvents how employment data is managed, approved, evaluated and used forever. This includes a new approach to modernizing outdated paper-based and data-poor systems that bar these workers from accessing financial services. We are proud to support Argyle’s outstanding team and their mission to help companies and institutions embrace the future of work,” said Ilya Kirnos, Founding Partner of SignalFire.
Kirnos will join the Argyle board alongside Ajay Agarwal, partner at Bain Capital Ventures, Daniel Yanisse, co-founder and CEO of Checkr, and Shmulik Fishman, founder and CEO of Argyle. Since raising its first fund in 2015, SignalFire has rapidly grown to $1 billion in regulatory assets under management. The company is known for supporting breakout businesses with its recruitment technology. The company’s notable investments include Ro, Grammarly, Frame.io, and MainStreet.
The need for a new, fair approach to credit decision-making is more urgent than ever. A last report Commissioned by Argyle, which surveyed more than 1,200 gig, freelance and other 1,099 workers, nearly half (49 percent) of respondents had been rejected by a financial services firm they knew they could afford , with over 60 percent reporting a rejection as a result of having a low credit rating. Fifty-two percent experienced negative mental health effects and 42 percent reported negative consequences for their family as a result of the rejection.
“Human resources dynamics have evolved and it is time to break the status quo. While Equifax led the way in the employment data industry, the landscape changed forever. It requires a completely different approach to employment data. There must be a user authorization. It has to be in real time. And it has to be fair,” Fishman said. “Argyle develops innovative technology solutions that meet these criteria to provide today’s workers with equitable access to financial services and products. It was our fastest year of growth yet as we turned our mission into action. Adoption of our platform continues to exceed our expectations as consumers, financial institutions and employers look for an alternative or complement to static and incomplete data from legacy systems.”
Argyle gives workers a fair opportunity while expanding the addressable market for businesses
Argyle transforms credit decisions. The company believes consumers shouldn’t be judged on a single opaquely derived number – creditworthiness – over which they have little to no control. Deviating from the traditional lending model, Argyle’s approach asks companies to reassess consumer applications for credit, housing, insurance and other key financial services.
Argyle’s solution enables its business customers to make decisions based on income verification and employment data that are real-time, user-authorized, and fair to all working individuals, not just full-time employees. Argyle provides transparency into the work and income habits of 1099 workers – information traditionally provided to service providers through a payroll system. This helps companies make well-informed decisions and more easily provide essential services, including workers’ compensation, health insurance and financial wellness products, to workers in the gig and creator economies.
When it comes to realizing the American dream of home ownership, many people are held back because they cannot qualify for mortgages based on traditional, static employment data. To address this, Argyle is also revolutionizing a sluggish element of the mortgage industry’s digitization process by giving lenders access to accurate, real-time income and employment data. Argyle offers a new model for collecting and authenticating income and employment data that meets compliance requirements from application to graduation. With fewer closing steps and less manual intervention, Argyle makes the mortgage process simpler and more reliable for all parties, reducing the time and cost of originating new loans. Last year, Argyle announced a strategic partnership with Finlocker, integrating Argyle’s employment and income data into Finlocker’s financial fitness app to help consumers qualify for a mortgage.
Argyle is building the leading consent-based employment data platform, helping people avoid situations where their personal information is being sold or used without their consent or knowledge. With Argyle, any business can process income and work verifications, get real-time visibility into earnings, and view and update worker profile details. By removing the barriers between a worker, the companies they make money from, and the company from which they buy services and products, Argyle has reimagined how employment data can be used to benefit institutions and individuals.