BANKING
contrary , their superior lending power makes them an invaluable asset in the lending space , if only the availability of funds could be broadened for SMEs . Venkatesh Varadarajan , Partner in Financial Services at
Infosys Consulting , is confident that , by 2030 , enhanced data sharing capabilities might harmonise the divide between banks and alternative lenders . “ Banks will be actively pulling in data from customers ’ other bank accounts and profiles , collaborating on products and services , and working in tandem to give consumers the full visibility they demand . This will allow them to slice and dice the benefits of each bank as they please , in line with their individual lifestyles .”
Fulfilling this vision across the board will be important ; Herrling also notes the worrying statistic that 35 to 40 % of businesses are currently at risk of falling outside what banks consider ‘ fundable ’ because of outdated standards . Clearly , what ’ s needed is a new paradigm for SME loan processing that takes modern capabilities into account .
Q . IS THERE A ROBUST SYSTEM IN PLACE FOR MEASURING SMALL BUSINESS RISK ? HOW CAN DATA BE MANAGED MORE EFFECTIVELY ?
CG : It ’ s incredibly difficult to assess the credit risk of small businesses , which is why at iwoca , we ’ ve developed a leading proprietary risk model using technology and data to assess credit risk accurately and at record speed .
Built to allow streamlined end-to-end processing and risk analysis specific to the micro and small business segment , our platform can assess businesses based on realtime performance data obtained from tech integrations with third parties . This allows us to go well beyond conventional credit scoring . Our ability to blend human expertise with machine learning allows iwoca to efficiently analyse and assess the financial health of SMEs . iwoca isn ’ t alone in seeking out new alternatives to cumbersome and legacy
66 June 2021