Alternative finance provider Liberis has used Open Banking technology to increase funding access for UK small businesses; using it to process a full funding application for the first time. Some hail this as a milestone in the financial world, Open Banking is enabling faster application and increased access to finance.
Working with the Open Banking technology firm Openwrks, Liberis was granted access by the customer to see their bank account transaction data in real time. Allowing a clear picture of the business’s funding needs and capabilities, Liberis used this new data source to enhance its decision-making.
This revolutionary method allowed Liberis to assess the application without the customer having to provide additional physical proof of their transaction history. This is a landmark application for Liberis given what open banking means for the future customer journey.
By using open banking technology, customers will benefit from a faster application process, and a more convenient renewals process. These benefits will make access to funding much smoother for small business owners, helping more small businesses to survive and thrive within the UK economy.
Jonny Hawkins, Head of Data Science at Liberis said: “Open banking is revolutionising the finance industry and we should expect continued improvements as data access advances. By making the funding application process easier, faster and fairer for small businesses, we can help more small business owners achieve their ambitions and further support their growth.”
At present, Liberis is using Open Banking technology for renewal customers only. Liberis is currently working towards making the process available to its new customers with a vision in making the application process fairer and more convenient for all small businesses.
OpenWrks founder Olly Betts commented: “It’s exciting to see the benefits of Open Banking being realised for small business owners. Not only do they have less of an administrative burden when applying for finance, but it also means lenders like Liberis can make faster and better lending decisions. Decisions accurately tailored to the specific circumstances of every single small business. This is a watershed moment for small business finance and one that I believe will lead to more small businesses getting the money they need to grow.”
Liberis provides funding from £2,500 to £300,000 to small businesses based on their future credit and debit card sales. The funding is paid back via a pre-agreed percentage of the business’ digital transactions, which means it’s especially suited to seasonal businesses as repayments are made in line with their daily income.
By providing simple, flexible and transparent funding, Liberis is on a mission to help UK SMEs achieve their long-term ambitions. To date Liberis has successfully helped over 7,500 small businesses, advanced over £230m in funding and supported over 35,000 jobs in the UK, contributing to the wider UK economy