Iwoca finds SME lending approvals through embedded finance are 58% higher

Small businesses applying for credit from Iwoca through its embedded finance partner network are more likely to be approved than those applying directly to Iwoca.

The stats are that in the first quarter of 2021, 50 per cent of Iwoca borrowers coming from an embedded finance partner had a lending decision in sub-two minutes, compared to just 12 per cent of direct applications.

And approvals were 58 per cent higher when coming through an embedded finance partner.

Why? Because embedding lending directly in the likes of Xero or Tide meant the applicants had more data on hand to complete their applications and to a higher standard.

That’s versus the applications that come directly to Iwoca’s website, where applicants might not have all the information they need or might not be able to submit as detailed information.

“iwoca has led the way in developing embedded finance products, and well over a quarter of businesses we are now serving come through our embedded finance partners,” said Colin Goldstein, commercial growth director at Iwoca.

“Accelerating this should be a central pillar to rebuilding our economy, and we look forward to working with more partners to help their small business customers get the finance they need.”

Iwoca started its journey into embedded finance with the help of a £10m grant from the BCR in 2019, which it used to develop its OpenLending platform.

Today 30 per cent of its applications are not coming through that platform, which is embedded with 20 partners including Tide,Xero and Funding Options, with more coming soon.

Hear more about embedded finance at AltFi’s Open Banking Forum 2021, a free virtual afternoon event on 6 October. Register your ticket today!