By Oliver Smith on Wednesday 14 August 2019
The cash will be used to facilitate “lending or payments services to SMEs”.
Lenders iwoca and Atom Bank are among the recipients of a £40m tranche of cash from the Banking Competition Remedies (BCR) fund, set up in the wake of the Royal Bank of Scotland’s bailout.
In total the BCR has £775m to hand out to challenger banking firms in the UK to boost competition, particularly in banking services for small businesses.
“Winning this grant is a huge milestone for us,” said Christoph Rieche, iwoca’s CEO and co-founder. “We’re confident that we’ll be delivering on our commitment to make £5 billion available to 150,000 SMEs by 2023.
In its public commitments iwoca included the development of a customisable self-serve OpenLending platform to connect its lending products with partners—including a new partnership to make iwoca’s loans more accessible to Xero’s 450,000+ UK subscribers.
Currencycloud’s CEO Mike Laven added that he was “delighted” with the award, and would use it to expand Currencycloud’s cross-border platform.
Laven’s public commitments included a target of enabling 10% of UK SMEs to access cross-border payments by 2024.
Atom Bank pledged an additional £3bn of business financing by March 2024, along with 70 new jobs and a co-investment of £15m from its own coiffeurs among its public commitments.
With the announcement of Pool C’s winners the Banking Competition Remedies fund has now completed the distribution of its capital.