Salt Edge will provide Open Banking technology to help improve credit assessment and loan monitoring of businesses wanting loans via ThinCats.
ThinCats, the alternative lender, is partnering with Open Banking specialist Salt Edge, in a deal which it says will help with credit assessments and loan monitoring.
The deal will mean that ThinCats can build up its Open Banking dataset to support customers through earlier identification of changing circumstances or additional funding needs.
“Given the high volume of cash flow 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,” said Gareth Rumsey, head of analytics, ThinCats.
“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.”
According to a recent McKinsey online survey of UK SMEs, 80 per cent of SMEs reported declines in revenues during the Covid crisis.
Many of these businesses are struggling to receive extra funding.
Open Banking advocates say by using Open Banking lending companies can more accurately assess the cash flow needs of borrowers.
Salt Edge has offices in the UK, Canada and Moldova.