Open Banking will enable faster underwriting, more flexible repayments and increases to credit limits for more than 100,000 SMEs
Digital lender Capital on Tap has partnered with leading provider of financial APIs TrueLayer to increase the speed and flexibility of loans to SMEs.
The integration will enable Capital on Tap’s customers to benefit from Open Banking by increasing the accuracy of the underwriting process by using real-time financial data. This will allow businesses to quickly access finance during the Covid-19 crisis.
Capital on Tap has also created two new services to provide reduced monthly payments on existing loans and increase the credit limit of current customers. Customers who explicitly opt-in to their financial data being analysed by Credit on Tap via TrueLayer’s integration will be able to adjust their monthly repayments and apply for an increased credit limit via a self-service function.
In addition, Capital on Tap will be able to monitor businesses that may be encountering financial difficulties due to the crisis and offer financial support.
Capital on Tap’s team created these services in collaboration with TrueLayer in under two weeks.
David Luck, CEO and co-Founder of Capital on Tap, said: “Over the last few weeks, the team has been working tirelessly on implementing new self-service features including enabling customers to manage their monthly repayments where necessary. At the end of March, call wait times shot up from 30 seconds to 2 hours so the self-service feature had to be built quickly – and has meant wait times are back down to the 30 second average. In a matter of days, our engineering team pushed it live and the TrueLayer connection is now an additional step to provide payment reductions and additional credit lines to even more businesses”.
Francesco Simoneschi, CEO and co-Founder of TrueLayer, said: “Quick access to finance and flexibility on repayments is absolutely critical for businesses and individuals at the moment. Open Banking offers a way to radically speed up this process by offering instant decisions and personalised products. It also reduces the administrative burden on businesses when applying for credit or a change of terms.”