mmob adds iowca to its network
The mmob open finance partnership platform has added small and medium-sized business (SME) lender iwoca to its network of digital finance providers, Financial IT reported.
The partnership will enable âbanks and other large financial institutions to easily integrate the supply of small business loans into their digital ecosystems and ensure that they can quickly meet the growing demand for alternative lines of credit from [SMBs] keen to invest in their post-pandemic growth, âaccording to the report.
In addition, the processing and sharing of customer information between the two entities will reduce the time SMEs have to spend on paperwork, making loan applications less complex and the approval process faster, the report says. .
âAs the big banks reduce their appetite for risk, we believe that integrated finance is the future of [SMB] loans, âiwoca business growth director Colin Goldstein said in the report.
He added that the partnership ensures that âmmob’s business partners can respond quickly to the growing demand for credit from [SMBs] and allows us to further expand our reach into new industries by integrating our solution into the financial applications and systems that business owners use every day.
The announcement follows iwoca’s quarterly SMB UK brokerage index, which showed growing demand for SME loans, according to the report. More than a third of brokers submitted more loan applications for unsecured finance in May compared to April.
And iwoca said its own data indicated that 50% of apps that go through integrated financial partners receive faster decisions and are 58% more likely to convert compared to direct apps, according to the report.
Earlier this year, iwoca announced the integration of its iwocapay product with Xero’s payment platform to provide SMEs with a Pay Later option.
Read more: iwoca integrates with Xero for the Pay Later option for SMEs
The integration allows iwocaPay to be accessible through Xero. Small business owners can add it to their Xero invoices for easier reconciliation, while their customers have access to more attractive payment options.