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Klarna Kosma helps SME lender boost loans

The software unit of BNPL giant Klarna sells banking tech to other financial services providers looking to harness open banking.

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Wilko Klaassen/Klarna

Klarna Kosma, the open banking arm of BNPL giant Klarna, says it has helped Swedish SMEs receive on average 15 per cent larger loan offers, at a 4 per cent lower interest rate, through its partnership with Krea. 

Krea is an SME business financing marketplace connecting lenders and borrowers. Its tie-up with Klarna Kosma has helped it access transaction-level data directly from businesses' bank accounts. 

“Following the Covid pandemic, it has become even more important for lenders to assess companies based on their most recent cash flows. Kosma’s Open Banking solution enables us to help more small businesses get access to finance at better rates,” said Carsten Leth, chief commercial officer at Krea.

So far this year, Krea says that more than 20,000 loan offers have been submitted to SMEs thanks to the use of open banking, substantially more than in previous years.

Wilko Klaassen (pictured), VP for open banking at Klarna Kosma, says the technology can provide more funding on better terms to borrowers. 

“This is a fantastic example of open banking delivering real benefits to small and medium-sized businesses, which are the driving force of growth in many economies," he added.

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