This collaboration aims to address the challenge of lengthy finance applications for UK small and medium-sized businesses (SMBs), as highlighted in a recent study by the Federation of Small Businesses (FSB). The integration of multifi into the Plaid network aims to streamline the financial application process, leveraging Open Banking technology. By analysing financial activity across various banks, including Barclays, HSBC, Lloyds Bank, Halifax, Santander, Natwest, and Monzo, multifi aims to expedite the evaluation of SMBs' financial health. This process was designed to reduce the time and effort required to apply for finance, providing quick, secure, and seamless data sharing.
Specifically, by leveraging Open Banking, multifi can offer personalised finance solutions and continually assess SMBs' ongoing financial health. This approach supports the identification of opportunities to extend credit limits based on company performance thus facilitating access to necessary financial support for growth. The partnership promises several benefits for SMBs, including reduced application times, personalised financial products, better data control and security, and improved financial management through detailed insights into financial data.
In the company press release, officials from multifi emphasised the significance of the partnership in transforming how UK SMEs access and manage their finances. They also talked about the importance of offering a faster, more intuitive, and secure way for businesses to thrive, particularly during challenging economic times.
Multifi specialises in helping UK SMBs by providing them with access to financial solutions aimed at removing barriers to financial access while supporting business growth and resilience. Plaid, on the other hand, is a global data network focused on simplifying payments, improving lending, and combating fraud. Working with over 8,000 companies, including fintechs and large banks, Plaid aims to support individuals with more control over their financial management.
In March 2024, Plaid announced a pair of partnerships with Sandbox Banking and RealPage to prevent fraud across several markets and ensure a more secure customer experience. These partnerships were formed in the context of more and more customers around the world turning to digital and modernised solutions to manage their finances. The new collaborations focused on delivering a client-centric approach to finances, while also prioritising the process of eliminating fraud and developing the overall financial services ecosystem.
For more information about Plaid, please check out their detailed profile in our dedicated, industry-specific Company Database.
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