iwoca and mmob partner to enable banks to respond to SME credit demands

By Joy Dumasia

iwoca, one of Europe’s largest small business lenders, has become an addition to the Open finance partnership platform mmob. The partnership will enable banks and other large financial institutions to easily embed small business loan provision into their digital ecosystems and ensure they can rapidly meet the rising demand for alternative lines of credit from SMEs eager to invest in their growth post-pandemic.

The secure processing and seamless sharing of customers’ personal and account information between iwoca and mmob’s partners will significantly reduce the time small businesses need to invest in filling out lengthy forms and submitting paperwork. This will help remove the complexity of applying for a loan and greatly increase the speed at which business owners can access much-needed lines of credit.

Colin Goldstein, Commercial Growth Director at iwoca, said: “As big banks reduce their risk appetite, we believe embedded finance is the future of SME lending. mmob presents an exciting opportunity for us and a win-win for everyone involved in its ecosystem. It will ensure mmob’s commercial partners can quickly respond to the increasing demand for credit from small and medium enterprises and enable us to further extend our reach into new sectors by embedding our solution within the financial apps and systems business owners use every day.”

mmob’s open finance platform eliminates the complexity, time, and resources financial service providers need to select and deploy partner-driven services. Banks and large established FinTechs can quickly and easily connect to mmob’s network of third-party partners and gain rapid access to new verticals through its API.

Recently, IBS Intelligence reported that iwoca, one of Europe’s largest small business lenders, has launched its industry-first cash advance product on Funding Xchange for small business online sellers. iwoca will be the first lender in the UK using Open Banking to offer fully automated revenue-based repayments to e-commerce businesses with a business bank account on the marketplace.