Fintech startup Trade Ledger has rolled out a new lending technology to help banks and traditional lenders fight off global tech giants planning to foray into financial services industry.
The new platform will give banks more advanced network and data analysis technology than global tech firms, the company claims.
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Trade Ledger CEO and co-founder Martin McCann said: “Banks and other business lenders have never been able to accurately leverage quality operational data to determine business lending risk, as a result there is a loan undersupply to the tune of AUD60bn each year in Australia, and AUD2.1 trillion globally.
“But as the global economy increasingly transitions towards smaller, high-growth businesses, banks have an obligation to learn how to supply working capital needed by these businesses for sustained growth. If they don’t learn to do this, it’s also only a matter of time before technology giants figure out how to resolve the problem, and swoop in.
“The challenge for banks is improving both its cost/income ratio and capital efficiencies within a segment considered higher risk, and Trade Ledger offers the first open banking platform that resolves both of these challenges,” McCann continued.
The platform will allow banks’ customers to apply for funding in just a few minutes, compared to the current 30-hour average process.
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By GlobalData“For the first time, banks and other traditional lenders will be able to use the digital information being created in supply chains to predict the exact probability of an individual invoice default at any given time,” McCann added.
