Liberis has taken advantage of Open Banking technology to increase funding access for SMEs by using it to process a full funding application.
The alternative finance provider worked with fintech OpenWrks after it was granted access by the customer to see their bank account transaction data in real time.
This allowed Liberis to see a clear picture of the business’s funding needs and capabilities and it used the new data source to enhance its decision making.
The Open Banking technology allowed Liberis to access the application without the customer having to provide additional physical proof of their transaction history.
Liberis hopes that this technology will lead to customers experiencing a faster application and more convenient renewals process.
“Open Banking is revolutionising the finance industry and we should expect continued improvements as data access advances,” said Jonny Hawkins, head of data science at Liberis.
“By making the funding application process easier, faster and fairer for small businesses, we can help more small business owners achieve their ambitions and further support their growth.”
Liberis is currently only using Open Banking technology for renewal customers, but it is working towards making the process available to its new customers.
Olly Betts, founder of OpenWrks, said that it was exciting to see the benefits of Open Banking being realised by small business owners.
“Not only do they have less of an administrative burden when applying for finance, but it also means lenders like Liberis can make faster and better lending decisions.
“Decisions accurately tailored to the specific circumstances of every single small business.
“This is a watershed moment for small business finance and one that I believe will lead to more small businesses getting the money they need to grow.”