Bank of atoms will work alongside Credit congratulations further strengthen open data capacity for business loan affordability assessments, with plans to deliver more than Â£ 1 billion ($ 1.4 billion) in loans over the next two years, according to a Press release.
Credit Kudos, unlike most credit reports, examines open banking data to provide a holistic, real-time view of individual or business finances, which helps lenders determine the applicant’s current financial situation, enabling them to offer some loans. at the right time. This, the statement notes, became even more prevalent during the pandemic.
Atom Bank will use Credit Kudos’ categorization and risk information to automate underwriting assessments, the statement said. This will enable immediate decisions and improve the customer experience as opposed to old traditional processes.
In addition, Atom Bank will be able to instantly verify income and know what credit repayments a small and medium-sized business (SME) can afford. And with the improved information, Atom will have access to the ability to offer loans to smaller and younger businesses that do not have the assets to secure against funding, the statement said.
The statement said the partnership will focus on secured small business loans, although it plans to expand to unsecured business and residential mortgages by the end of this year.
âOver the past year, it has become increasingly difficult for lenders to understand the current financial situation of individuals and businesses,â said the founder of Credit Kudos. Freddy kelly in the output. âTraditional credit reports aren’t up-to-date or complete enough, but open banking data allows us to provide lenders with a real-time, holistic view of an individual’s or business’s finances, as well as a forecast. future circumstances. Our partnership will help Atom Bank make significant strides in its services and support even more small businesses in the months and years to come. “
Last month, PYMNTS announced that Atom Bank plans to raise 40 million pounds ($ 55.3 million) from existing shareholders as it prepares for an initial public offering (IPO). The IPO is expected to take place during the 2022-2023 fiscal year.