5 UK FinTechs aiding businesses during COVID-19 pandemic

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The digitisation of FinTechs has accelerated exponentially in the current scenario, but companies having the best access to agile and adaptable platforms will able to navigate the ongoing COVID-19 landscape most effectively. As the COVID-19 pandemic continues, many FinTechs have stepped up to assist stressed individuals and businesses in coping with the after-effects.

The swift response from FinTechs is testimony to the rapid growth of the industry in recent years and its growing strength in the financial services ecosystem today. This is partly driven by initiatives like open banking, which have enabled them to request access to customer banking data for the first time and use this to launch better products and services.

Here are 5  FinTechs that have risen to the challenge with their innovative methods of supporting customers during the crisis :

Starling Bank

Neobank Starling Bank offers personal, business, joint, and euro current accounts on Android and iOS. The digital bank has been accredited by the British Business Bank as a BBLS lender and enabled to provide term loans between £2,000 to 50,000 to SMEs struggling because of COVID-19. Starling has launched several initiatives for helping SMBs and vulnerable customers, including a Connected card for assisting self-isolating personal account customers to entrust it to someone for payment of groceries and other essential items on their behalf.

It also collaborated with Funding Circle to offer £300 million of loans to SMBs under CBILS and rolled out a new digital banking Toolkit, and a US dollar account for allowing British entrepreneurs to spend directly in pounds and dollars with a single debit card, post lockdown.

Starling is a fully licensed and regulated bank.

Tide

The business banking platform’s credit subsidiary Tide Capital was accredited as a lender under the BBLS, thus enabling it to offer term loans between £2k and £50k to struggling SMBs amidst the COVID-19 pandemic. Tide also rolled out its Coronavirus Government Support Eligibility Checker in a bid to provide SMEs with access to financial aid, help SMEs to identify the financial help available to them, and assist them in accessing the available support.

Recent research by Tide also revealed the financial health of the SMEs in the UK, amidst the COVID-19 crisis. The company surveyed 1000 SMB executives with 0-49 employees, out of which 75% said that they have been adversely affected by the pandemic, and it might worsen throughout April.

 iwoca

Small business lender, iwoca, received accreditation by the British Business Bank under CBILS, allowing the company to offer SMBs with access to loans between £50,001 and £250,000. The company had stated that it would not charge interest or capital repayments for the first 12 months, along with no personal guarantee. It also launched a new platform, OpenLending aiming to bring together the FinTechs and banks, brokers, accountants, and bookkeeping platforms and enhance digital access to finance, especially during the COVID-19 outbreak as bank branch networks and call centers have been severely disrupted.

The business lender recently rolled out the launch of iwocaPay, a tool for reducing payment term risk and encouraging SMBs to offer trade credit.

TrueLayer

The financial API services provider recently launched Donate Direct, a donation application running on Payment Initiation technology, which is entirely free to use for charities. The app enables fee-free donations for charities amidst the pandemic. Organisations including Women’s Aid, FareShare, End Youth Homelessness, The Wonder Foundation, The Brokerage have signed up to Donate Direct.

The FinTech also opened up its platform for assisting any individual or business during the COVID-19 outbreak by providing solutions for “streamlining processes, reducing costs, and enabling innovations where it is needed the most.”

Contis 

Payment solutions provider Contis launched an instant issue card program for allowing safe access to money during the COVID-19 pandemic. The release will allow credit union members to get their crisis loan approved and issue on a contactless card, through the supplier’s community banking division.

It also rolled out Contis Cares, a new program that aims to offer long-term solutions for the most vulnerable individuals amidst the COVID-19 pandemic. The FinTech’s new Carer Banking solution allows nominated carers to purchase goods and suppliers for the vulnerable in a controlled manner.