Small and medium-sized businesses in the United Kingdom now have access to quick funding from a bank thanks to a new partnership between Kabbage and Santander. Available funds will range between £500 and £100,000.
The process of applying for funds, awaiting a decision, and then accessing those funds if approved can take as long as 12 weeks. The exclusively online solution available from Santander employs Kabbage technology to provide a decision within minutes and access to funds in one day.
“With SMEs comprising 99 percent of the UK private sector, having fast and secure access to funds would ensure they can continue to make an important contribution to the UK economy,” Santander’s UK CEO Nathan Rostock said. “Our collaboration with Kabbage aims to provide UK businesses with the ability to draw down funds as and when required, whether this be covering a short-term funding need or enabling them to seize growth opportunities as they arise.”
The process is accelerated because of a risk scoring technology developed by Santander UK credit staff and employed on the Kabbage platform. Data Kabbage has generated in other environments and external sources such as credit ratings, social media and payment providers are also used.
A soft launch is scheduled over the next two months, with any revisions based on feedback received from Santander customers.
A Santander official explains why they are working with Kabbage.
“The strengths of the Kabbage platform lie in terms of real-time risk modeling and its extensive capabilities to cross reference data against multiple sources,” Chief Customer & Innovation Officer for the UK Sigga Sigurdardottir said. “When added to our own customer base, trusted reputation, UK payments infrastructure and understanding of the requirements of UK businesses, this creates a powerful proposition.”
“We are excited by our collaboration with Santander, who has demonstrated a strong appetite to go further than a standard conversation around innovation in the financial technology landscape,” Kabbage COO Kathryn Petralia said. “Today’s announcement underscores the institution’s desire to present a technology and data-driven solution, quickly, to its customers.
“It’s great to work at pace and push the boundaries in order to build a better service for UK businesses.”
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