Open banking technology is enabling business loan applications up to a million dollars in value to be applied for in as little as five minutes.
The new technology securely shares the customer’s accounting data which enables seamless applications.
Westpac NZ has partnered with open data fintech Common Ledger to create a cloud-based platform that allows the business banking team to assess an application based on a full view of the customer’s business financials. This results in a faster and more transparent process for both the customer and lender.
Westpac NZ General Manager of Institutional and Business Banking, Simon Power, says the partnership will empower business customers to participate in the open data economy and make use of their digital and portable data.
The digitisation of the lending process could speed up the loan process by up to 30%. Previously customers would have filled out a four-page form and called their banker or gone to their local branch.
How does it work?
- Business customers who use MYOB as their accounting software provider can log into the Westpac website to lodge an online loan application in as little as five minutes.
- The CreditScout platform allows customers to share data with Westpac and apply for the loan in a couple of clicks.
- Westpac will contact customers within 24 hours to discuss the application of the loan.
Common Ledger connects open accounting data from accounting platforms such as MYOB, so the information can be shared with Westpac to co-ordinate all the business vitals needed for loan applications, speeding the process up.
“Westpac is making a big move for small businesses. We’re really excited about this partnership and transforming the lending process for Westpac customers,” Common Ledger CEO Carlos Chambers said.
“The information is securely delivered to the bank, where it’s structured using our machine learning engine and packaged into insights presented to the lenders.
“The goal is to present the information customers want to share and lenders need to see in a workflow that’s super easy to use – removing time and effort and accelerating the flow of capital to customers,” Chambers said.
Power says small businesses have shown impressive resilience despite difficult economic conditions over the past 12 months.
“Small businesses are essential to our economy and will continue to play a big role in our COVID-19 recovery. An important way we can help them adapt and grow their business is to provide timely access to lending solutions,” Power said.
“We chose to partner with Common Ledger because of their proven track record of integrity, innovation and reliability. They bring unique and specific knowledge to business lending, and a deep understanding of how open business data can be used to reimagine and improve it, he said.”