How fintech is revolutionising commercial loans

7 Jul 2024

Have you heard of the fintech wave? It’s taken the banking world by storm. Now, find out how it’s impacting commercial loans.

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The fintech wave has taken the banking world by storm. Fintech saw incredibly fast growth across the 2010s with the emergence of a range of exciting, ground-breaking fintechs across sectors such as mortgages, digital banking, and payments.

In fact, in just one year, London’s fintech sector saw a 61% surge in job creation, with a 37% increase in IT roles across the UK. In that same year, there was also a 51% increase in the number of e-money companies and London took second place globally in terms of the number of fintech companies operating in one place.

But, what does all this mean for commercial lending?

And more importantly, what does it mean for you as an SME?

How is fintech impacting commercial lending?

Fintech has completely revolutionised commercial lending. Here are some examples of the changes we’ve seen:

  • Faster approval processes: With the support of tools like AI and open finance, lenders are able to get a more accurate picture of borrowers within a faster time frame. This has dramatically sped up and improved the approval process.

  • Streamlined applications: Speaking of open finance, this trending fintech solution has also sped up and streamlined the application process, making form and data submission much easier on the borrower’s side.

  • More options: More players in the game means a wider variety of solutions available for borrowing companies. Once upon a time you had to walk into a bank, sit down with a branch manager and apply for a loan. Today, with the support of fintech, there are a range of alternative lending opportunities available for companies of all shapes and sizes. One survey by PYMNTS even found that 75% of small to medium businesses who needed working capital were more likely to choose a digital-first bank over a traditional brick and mortar financial institution.

  • Customisation and personalisation: With the support of tools like AI, automation, and digital platforms, lenders are able to hyper-customise solutions, with the intention that borrowers can more easily find and apply for the products most suited to them.

  • Improved accessibility: Some fintech solutions make it possible for lenders to review current cash flow and other data sets as a way to assess the likelihood a borrower will repay a loan. This makes it possible for businesses who may have struggled to find funding in the past to find new avenues for commercial loans.

  • Decentralisation: Solutions like blockchain and P2P lending have made it possible for some businesses and financial companies to decentralise lending, cutting out the middleman and the traditional institutions, if that’s a route they want to go down.

  • Better customer service: Fintech has brought with it an improvement in customer service in the form of self-service solutions, easy-to-use digital platforms, and robo-advisors.

Find a commercial loan with Funding Options by Tide  

Looking for a commercial loan? Would you like to leverage fintech-powered alternative funding? Our online platform is designed to help connect borrowers to suitable lenders. Just click the link below to apply for a commercial loan.

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Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.

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Funding Options

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