Small business lender iwoca is releasing Open Banking for all new customers with a Lloyds Bank account, the first such SME open banking partnership to go live.
iwoca is the first SME lender to connect with any of the nine largest banks under the Open Banking initiative.
By securely linking their Lloyds Bank data, business owners can now provide iwoca up to five years of transaction history.
According to iwoca, this accelerates the application process for customers to less than 60 seconds.
Imran Gulamhuseinwala, Implementation Trustee at the Open Banking Implementation Entity (OBIE), says: “Products and services powered by Open Banking will, in time, transform the way people and businesses access financial services in the UK.
“iwoca has seen and seized the opportunities that Open Banking can bring. It has been a key player within the ecosystem from the start – engaging with banks and collaborating with other third party providers.
SME open banking – revolutionising access to financial services
“Its successful connection to Lloyds Bank is another milestone in the Open Banking era. Moreover, it will help revolutionise the way small businesses access financial services. I’m excited to see iwoca’s work continue as they open up Open Banking integrations with other providers in the future.”
Christoph Rieche, CEO and co-founder, iwoca says: “Open Banking means high street banks no longer have a monopoly on transaction data. As a result, it’s now easier for small businesses to shop around and find the best financial service to meet their needs, without worrying about the brunt of loan application processes. With Open Banking, getting approved with iwoca is as fast as it is to drink your morning cup of coffee.”
SME open banking – Barclays, HSBC, RBS, Santander to follow
“We worked closely with the Open Banking Implementation Entity and Lloyds Bank to deliver this integration. We aim to launch future integrations with Barclays, HSBC, RBS, Santander and others within the coming weeks.”
Rieche continues: “But realising the great potential of Open Banking depends on the cooperation of each bank. And on small business owners trusting and understanding the Open Banking process. Therefore, it’s critical for banks and Government to do all they can to enable and encourage Open Banking.
“This will create greater competition in small business lending and, as a result, better, fairer services for small business owners.
iwoca provides loans of up to £200,000 to small and micro businesses across the UK, Germany and Poland.