ThinCats partners with Salt Edge to bring Open Banking benefits to SME lending
ThinCats, a UK-based alternative lender to mid-sized SMEs, has partnered with Salt Edge, a leader in offering Open Banking solutions, to improve the efficiency of its upfront credit assessment and ongoing loan monitoring processes.
The UK is globally recognised as a cradle of Open Banking and during these uncertain times the most forward-minded participants in the industry are using data provided by Open Banking to improve their service offerings. According to a recent McKinsey online survey of UK SMEs, 80% of SMEs reported declines in revenues during the Covid crisis. Considering the cash flow challenges that lockdown restrictions have caused, many businesses are struggling to receive additional funding. Using Open Banking data, lending companies can more accurately assess the cash flow needs of creditworthy borrowers and shape funding solutions specific to their necessities.
ThinCats is a leading alternative finance provider dedicated to funding growing and ambitious mid-sized SMEs from the UK with loans from £1 million up to £15 million. The collaboration with Salt Edge will enable ThinCats to build up its Open Banking dataset to support its customers through earlier identification of changing circumstances or additional funding needs. Data aggregation will help ThinCats to integrate real-time information in its credit decisioning and portfolio monitoring.
Salt Edge’s Data Enrichment solution will upgrade ThinCats’ data models with actionable insights, that will help streamline and shorten the funding process for borrowers.
Given the high volume of cashflow backed loans that we fund, Open Banking has a key role to play in helping us support creditworthy, but asset-light businesses, so it was important for us to find the right partner. Salt Edge were able to provide a portal-based trial within days, which enabled us to test both the technical aspects of the service and the usefulness of outputs we could expect to see. The support throughout the trial and as we moved to a live API-based solution was excellent; feedback from clients also indicated that the sign-up process from their side was straightforward and user-friendly.
SMEs are in great need of better data-led solutions and we are truly proud to be teaming up with ThinCats, who are combining traditional lending skills with powerful data analytics, and now Open Banking capabilities through our collaboration, to help businesses grow.
About Salt Edge
Salt Edge – a financial API platform with PSD2 and open banking solutions. The company has two main vectors of activity: enabling third parties to get access to bank channels via a unified gateway, and developing the technology necessary for banks to become compliant with the directive’s requirements. ISO 27001 certified and AISP licensed under PSD2, the company employs the highest international security measures to ensure stable and reliable connections between financial institutions and their customers. The company is integrated with 5000+ financial institutions in 50+ countries.
ThinCats is an established alternative lender dedicated to funding mid-sized UK SMEs with business loans from £1m up to £15m using pioneering data, personal relationships and a pragmatic lending process. ThinCats’ progressive approach has already enabled SMEs to borrow more than £665m. ThinCats is the trading name of a group of companies owned by ESF Capital Limited.
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