You might have heard of the phrase ‘Open Banking’ already but what is it exactly? And most importantly, how will it help make the process of getting a business loan faster? Let us explain…
What’s Open Banking?
Open Banking is a broad term describing technologies and practices which enable financial institutions like banks to share information more freely. The main goal of Open Banking is to increase competition and innovation in financial products.
It all started with an EU directive, the 2nd Payment Services Directive (PSD2), which was passed in November 2015. As part of the directive, member states had two years to incorporate it into their laws and regulations.
Thanks to Open Banking, you can ask your bank to share details about your spending habits and regular payments with another bank, so you can compare accounts. That should make it easier for you to find the right product for you.
It’s also opened the door to many handy apps and services. Those little chat bots that you can connect to your bank account? They’re all thanks to Open Banking!
How will it speed up my loan application?
When you apply for a business loan from Boost Capital, we ask for your bank statements so we can make our decision. We need to see statements from the last three months so we can work out how healthy your business’s finances are.
In the past, this meant sending us PDF statements. Most of the time, those statements included the information we needed. But sometimes, they didn’t – which would slow the process down.
Now we’ve announced our support for Open Banking, you won’t need to faff about collating, downloading and uploading bank statements all. And you won’t need to worry that they include the right info.
Simply log in to your online account and you can share the information with us instantly.
When you’re looking for business funding, time is usually of the essence. So the less time you need to spend getting a decision, the better.
If you need to boost your business’s cash flow, apply online and we can get you the capital you need in as little as two business days.