Atom Bank, Credit Kudos Team On SMB Loans

Atom Bank will work alongside Credit Kudos to further boost open data capabilities for business loan affordability assessments, with the intent of delivering more than 1 billion pounds ($1.4 billion) in lending in the next two years, according to a press release.

Credit Kudos, in contrast to most credit assessments, looks at open banking data to provide a holistic, real-time view of either individual or business finances, which aids lenders in figuring out the current financial position of the applicant, letting them offer certain lending at the right time. This, the release noted, has become even more prevalent during the pandemic.

Atom Bank will use Credit Kudos’ categorization and risk insights to automate the underwriting assessments, the release stated. That will allow immediate decisions and improve the customer experience as opposed to the old, traditional processes.

In addition, Atom Bank will be able to instantly verify income and know what credit repayments a small- to medium-sized business (SMB) can afford. And with the enhanced insights, Atom will gain access to the ability to offer loans to smaller and younger businesses that don’t have the assets to secure against finance, according to the release.

The release stated the partnership will focus on secured small business lending, although it plans to expand to unsecured businesses and residential mortgage lending by the end of this year.

“Over the past year it’s been increasingly difficult for lenders to understand the current financial situation of individuals and businesses,” said Credit Kudos Founder Freddy Kelly in the release. “Traditional credit reports are not up-to-date or extensive enough, but open banking data allows us to provide lenders with a real-time, holistic overview of an individual or businesses’ finances, as well as a prediction of future circumstances. Our partnership will help Atom Bank make significant advances to its services and support even more small businesses in the coming months and years.”

Last month, PYMNTS reported that Atom Bank plans to raise 40 million pounds ($55.3 million) from existing shareholders as it gears up for an initial public offering (IPO). The IPO is set to happen in the 2022-23 financial year.