SME loan made using open banking data from alternative lender iwoca

Wednesday 14 November 2018 08:45 CET | News

A small business loan has been made using open banking data via UK-based business finance aggregator Funding Options.

It is the first time Open Banking data has been used by a UK fintech for the comparison of small business financial services, according to Funding Options.

The loan saw a Kent beauty salon borrow GBP 10,000 from alternative lender iwoca in just one hour and 23 minutes. Funding Options is now using open banking data to fast track SME credit approvals. It uses 40 data points to detect how a small business is performing and its likelihood to default based on a number of factors including current account performance, cash flow and behaviours.

According to Funding Options representatives, the announcement today is step forward in the fintech and small business communities as open banking data starts to make a real difference at the grass roots level to UK business.

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Keywords: iwoca, Funding Options, UK, Open Banking, lending, alternative lending, cash flow, Open API
Countries: World