13th December 2019
Funding Xchange transforms business lending with data analytics
Bank executives can learn how data analytics is transforming the core business of lending by paying close attention to the small and medium-sized enterprises (SMEs) lending marketplace.
Katrin Herrling is founder and chief executive of Funding Xchange, a UK marketplace platform on which SME borrowers just need to provide a few details on their businesses in order to receive accurate quotes and lending terms that fit their business needs instantly.
“Our system connects to the application program interfaces (APIs) of the leading credit reference agencies, such as Experian. Within three to four seconds, it draws their data on a borrower and our system then runs it through the credit underwriting models of our lenders, including eligibility, affordability and risk pricing. It then shows all the financing options for which a borrower is eligible and the indicated charges.”
The customer will typically see four or five options and can then decide which to apply for. Only then do lenders learn of this company seeking funding.
Herrling says: “In some cases, where a lender such as iwoca, for example, allows us to access their loan application process through their API, a borrower can have funds in their account within 10 minutes.”
Read the full article on Euromoney