Wilko Klaassen, VP for Open Banking at Klarna Kosma called the partnership and the facility for SMEs a fantastic example of Open Banking delivering real benefits to small and medium-sized businesses.
Klarna Kosma comes into the mix when SMEs provide transaction-level data directly from their business bank account to the Krea platform. This detailed data on the day-to-day operations of the business is said to provide lenders with the confidence to offer larger loans at lower interest rates. SMEs who provide their bank account data via Klarna Kosma are offered on average 15% larger loans at a 4% lower interest rate.
According to the company press release, this asvantage has contributed to Krea facilitating more small business loan approvals, with more than 20,000 loan offers being submitted to SMEs in 2022.
Released in March 2022, Klarna Kosma is Klarna's financial technology platform for banks, fintechs, and merchants who are developing payment services or need access to financial data to develop their own solutions for the benefit of end user. Kosma provides financial institutions, fintechs, and merchants with the essential connectivity to build fintech apps and services by providing access to 15,000 banks in 27 countries around the world through a single API.
Klarna first entered the Open Banking space when it acquired SOFORT, a direct bank-to-bank payment service in Germany, in 2014. Since then, Klarna has developed the service, expanding it into 24 markets, and begun to use Open Banking to power additional in-house services.
Klarna now uses Open Banking to power Account Insight Services (AIS), which provide spending insights to shoppers directly in the Klarna shopping app, and provide additional, real-time data helpful to making lending decisions for Klarna payment methods.
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