Alternative finance provider AMP Credit Technologies announced its UK launch yesterday, which will help British banks lend money to small and micro-businesses.
Banks are usually reluctant to lend to small businesses because of many SME’s thin credit file. AMP’s platform, which is already in operation in Hong Kong, Singapore and the Philippines, “supports the processing of large portfolios of small business loans secured by their electronic cashflow on a profitable and efficient basis,” CEO Thomas J. DeLuca wrote in a blog post.
AMP uses principles from micro-finance, payment processing, data analytics and predictive modelling – together with more traditional loan underwriting principles – to enable banks to service loans to these smaller businesses.
“Our ambition is to serve the needs of all small businesses in the UK through financial institutions which have the advantages of lower cost of capital, extensive distribution networks, stronger regulatory protections for borrowers, and established relationships with their customers – resulting in more credit availability to small business customers, at more competitive pricing, and on transparent terms,” DeLuca said.
AMP secured £5 million in series A funding from SBT Ventures last year.
The company made the announcement at Innovate Finance’s first global summit at Guildhall in London.
Whitepapers
Related reading
5 ways blockchain can change the cross-border payments landscape
Cross-border payments is a changing sector of the industry, driven by customers demanding little to no friction and encountering multiple steps, intermediaries ... read more
The SME technology revolution | video
The UK is home to 5.4m micro SMEs that have fewer than nine employees, according to the House of Commons library. They ... read more
JP Morgan blockchain network showcases banks’ DLT progress
JP Morgan’s expansion of its blockchain-based interbank payments project signals that major banks are stealing a march on disruptors and startups by ... read more
Security a priority for EU’s INATBA blockchain taskforce
The European Commission’s new blockchain initiative, the International Association for Trusted Blockchain Applications (INATBA), should focus on quashing extant security concerns around ... read more