Connect with us

Banking

BANCO BNI EUROPA TO PROVIDE £45M TO UK SMES THROUGH MARKETINVOICE

Published

on

BANCO BNI EUROPA TO PROVIDE £45M TO UK SMES THROUGH MARKETINVOICE
  • European Bank BNI Europa in strategic partnership with MarketInvoice
  • Brexit: European Institutions propping up UK SMEs with working capital
  • MarketInvoice Pro take-up driving interest from Institutions 

MarketInvoice, the world’s largest peer-to-peer online invoice finance marketplace, has signed an agreement with Banco BNI Europa (BNI) to provide £45 million in funding annually on the marketplace to fund working capital solutions for businesses across the UK.

BNI trialled an investment last year (£28.3m) and has now signalled its full commitment and confidence in the MarketInvoice proposition. Overall, sums advanced to UK businesses from institutional investors via MarketInvoice have almost doubled over the last three years from £96.1m to £176.2m. Interestingly, since the Brexit vote, global institutional investor investments in MarketInvoice have increased 34% compared to investors in the UK, which has remained constant.

MarketInvoice has funded over 70,000 invoices worth more than £1.2 billion (to date) unlocking working capital for businesses across the UK. MarketInvoice effectively supports over 18,700 jobs across the businesses it serves, driving UK economic progress.

The recent increase in interest from global institutions has come since the launch of MarketInvoice Pro and mirrors the up-take of the product by UK businesses. MarketInvoice Pro is a confidential invoice discounting facility, launched in February 2017, offering businesses a funding line against their outstanding invoices. This product upgrades the MarketInvoice offer from its long-standing invoice-by-invoice product called Select.

 Pedro Coelho, Executive Chairman of Banco BNI Europa commented:“In 2015, we put in place a digital strategy to drive our investments through fintech platforms. This news is testament to how well it has worked for us.”

“We are proactively working with fintech businesses globally that prescribe to our vision of providing low-cost, innovative products with exceptional customer service. MarketInvoice has consistently delivered these values over the years. The MarketInvoice Pro service is now a further means to build on our relationship as it provides a longer-term arrangement.”

“It is inevitable that banks will work more collaboratively with fintech businesses. I am firm believer of this and see much scope in the industry.”

Anil Stocker, CEO and co-founder of MarketInvoicesaid:“Institutions have played a significant role in our growth story and over the past two years have consistently funded almost 60% of the working capital provided to UK businesses via MarketInvoice. This new commitment from BNI is further proof of our ability to provide finance to high growth businesses across the country, we’re excited by their support of our mission.”

“Banco BNI Europa has shown foresight in adopting a digital strategy and executing it by working with the European peer-to-peer industry. There are strong synergies between us as a fintech platform and BNI as a digital-only bank. We look forward to building on this relationship as we scale into larger funding lines through our new MI Pro product. I’m sure we’ll see many more examples of this type of collaboration in the coming months.”

MarketInvoice’s main strategic ambition is to broaden its reach to be able to support a wider range of businesses, from start-ups to larger businesses looking to scale up. The company aims to help even more companies get paid faster by financing their invoices, so business owners can save time and focus on running their business.

MarketInvoice business highlights (last 12 months):

  • Funded against invoices worth over £1.2b (to date, since 2011), £2,196 funded every minute to UK businesses in 2016
  • Provided record funding to UK businesses in March 2017 (£54.7m) and delivered 60% year-on-year funding growth from £81.1m (Q1 2016) to £129.6m (Q1 2017)
  • Raised £7.2m (series B) in recent investment round from European venture capital fund Northzone and private equity group MCI Capital
  • Appointed Giles Andrews, the founding father of peer-to-peer lending, as Chairman in March 2017

Banking

Open Banking: the perfect pandemic tool – Equifax comments

Published

on

How the application network unlocks open banking’s future

With COVID-19 related financial fallout set to dominate the credit landscape in 2021, Dan Weaver, Open Banking Expert at Equifax UK, believes Open Banking solutions can provide lenders clarity in a sea of uncertainty: 

“With lockdown once again in place across the UK, it’s clear 2021 will be a year of extreme financial flux. While the vaccine roll-out programme will provide an economic boost and eventual easing of restrictions, forbearance measures, such as mortgage holidays and the government furlough scheme, will be wound down. This will lead to income shocks for many, and the potential for a nationwide surge in personal debt.

“With the third anniversary of its implementation today (13 January), Open Banking is entering a new mature phase of its development. The initiative’s credentials are now widely established, offering creditors the perfect pandemic tool to assess the most accurate picture of an individual’s finances.

“Consider someone who has just returned to the workforce after being made redundant or placed on furlough. Traditional credit bureau or legacy data alone would not always provide potential lenders with the most up-to-date information on their current financial circumstances and ability to repay credit at the point of application. Open Banking platforms, through customer consent, pull live data directly from the user’s bank account, allowing creditors to make an informed, responsible and fair decision about their current affordability on the most recent data available – a game-changing factor amid such widespread financial upheaval and rapid change in people’s circumstances.

“Open Banking is a tool for our times and it’s vital more credit providers, not just big banks and finance but utilities, insurance, auto and telcos companies, accelerate its adoption. Throughout our society and economy in the past year, we’ve witnessed feats of great innovation, executed at rapid speed. In 2021, we need to apply this transformational energy to the Open Banking landscape, slashing the time it takes for creditors to test protocol and fully set up their solutions.

“Three years after its arrival, we’re seeing Open Banking platforms improve digital, real-time income verification rates by more than 25% * – which is no mean feat. If an industry-wide, mass acceleration strategy was successfully achieved in 2021, it would prove extremely valuable and timely, and lead to better customer and creditor outcomes throughout the credit space.”

Continue Reading

Banking

Over a quarter of Brits now have an account with a digital-only bank

Published

on

Over a quarter of Brits now have an account with a digital-only bank 1

Over a quarter of Brits now have an account with a digital-only bank 2 The number of Brits with a digital-only bank account has gone up by a percentage increase of 16%

Over a quarter of Brits now have an account with a digital-only bank 3 Almost 1 in 6 Brits (17%) plan to open a digital bank account over the next 5 years

Over a quarter of Brits now have an account with a digital-only bank 4 The top reason for opening an account was the convenience of banking online for the third year running

Over a quarter of Brits now have an account with a digital-only bank 4However, 16% of traditional banking customers who aren’t planning to switch said their bank had been helpful during the COVID pandemic

Currently over a quarter of Brits (27%) say they have at least one bank account with a digital-only bank, according to personal finance comparison site finder.com.

This is a percentage increase of 16% from last year when 23% of Brits said they had an account with a digital bank. It is also over 3 times the amount of Brits who had one in January 2019 (9%).

Finder’s 2019 research found that 24% of Brits intended to have a digital-only account by 2024. However with 27% now having an account, Brits have gone digital 3 years earlier than expected.

A further 17% of Brits intend to join them over the next 5 years, with 11% planning to do so over the next year. This could mean that 44% of Brits could have an account with a digital bank by 2026. If this percentage were applied to the UK adult population, it would equal almost 23 million people.

The top reason for opening an account continues to be convenience that digital-only banks provide, for the third year running (26%). The second most common reason was that users needed an additional account and setting up a digital account seemed to be the easiest option (20%). Customers also wanted to transfer money more easily (19%), making this the third biggest priority.

People wanting a trendy card is still driving signups as well, with 1 in 10 (10%) existing, or future, customers citing this as a reason to get an account.

Despite the increase in digital-only banking customers, the numbers who aren’t considering one have actually risen. Last year, 23% of respondents said they aren’t considering a digital-only bank account, but this has risen substantially to 42% in the latest survey.

This is likely a result of increased customer loyalty, 58% of those without a digital bank account said they felt as though their incumbent bank had treated them well and therefore had no desire to open a digital bank account. Additionally, 16% felt as though their incumbent bank had performed particularly well during the pandemic.

Over a third (36%) of those without a digital bank account said they had not decided to bank with digital providers because they preferred to be able to speak to someone in branch.

Digital banks are still most popular with younger generations, 46% of gen Z say they currently have a digital bank account, with a further 28% intending to get one over the next 5 years. This would mean that by 2026 just under three quarters of gen Z (73%) could have a digital bank account.

To see the research in full visit: https://www.finder.com/uk/digital-banking-adoption

Commenting on the findings, Matt Boyle, banking specialist  at finder.com said:

“This research shows that digital-only banks are here to stay, with the number of users in the UK rising for 3 years straight. On top of this, Starling and Revolut announced this year that they have made a profit for the first time, really demonstrating that digital banks are starting to become a serious part of the banking furniture.

“The pandemic has also played a role in the rapid digitalisation of the banking industry, with those who had never experienced online banking having no other choice but to take their finances online. It seems that Brits are starting to realise the convenience that can come with digital banking and this is reflected in our research.”

Methodology:

Finder commissioned Censuswide on 6 to 8 January 2021 to carry out a nationally representative survey of adults aged 18+. A total of 1,671 people were questioned throughout Great Britain, with representative quotas for gender, age and region

Continue Reading

Banking

The Impact of the Digital Economy on the Banking and Payments Sector

Published

on

The Impact of the Digital Economy on the Banking and Payments Sector 6

By Gerhard Oosthuizen, CTO Entersekt.

New banking regulations, digital consumers, the eradication of passwords, contactless technology – these are just some of the trends that will shape financial services and payments in 2021, writes Entersekt CTO, Gerhard Oosthuizen.

Since the outbreak of COVID-19, traditional businesses have been compelled to further undergo the digital transformation to meet the needs of a consumer base largely confined to their homes. Indeed, we estimate that there has been a 30% growth in the digital space. With this acceleration towards a digital world, banking, transacting and payment trends have and will continue to be redefined into 2021.

We have witnessed a rising number of digital first timers. That is, people signing up for online banking and e-commerce, whilst progressively shifting away from traditional channels. Businesses that have previously depended on walk-in stores and having a physical presence have also had to recognise that online transactions are now the new norm, and to adjust accordingly.

Whereas in the past, registering a customer for a service could take place in a shop, a booth or a branch, today it has become more important than ever to have a remote digital registration option available as well. Even working behaviour has changed considerably, with many businesses accommodating for remote working in the long term.

This is what sets the scene for 2021 – people expect to work from home as well as carry out their transactions from home.

Banking and Payment Trends in 2021

The use of contactless technology is undeniably growing, but on top of more people tapping with their cards, we are also seeing much more engagement with QR payments. A technology already frequently employed in Asia, we know QR codes can work. It would enable consumers to authenticate themselves when making a transaction without needing a PIN pad. More importantly, it allows consumers to gain complete control of their transactions from their own device and have an overall richer experience. Recognising this, we anticipate noteworthy developments in QR and NFC-enabled tap and go payments over the next year.

In light of FIDO (Fast Identity Online) and the ever-expanding network of FIDO-compliant solutions, we also expect the emergence of entirely passwordless systems. Organisations will likely begin enlisting customers by way of biometric authentication through devices and digital identities that already exist, such as banking apps. Long gone will be the days of having to remember numerous passwords, only to forget and reset them again. That is the idea anyway.

In 2021, there will probably be a pronounced adoption of delegated authentication as well, whereby

Gerhard Oosthuizen

Gerhard Oosthuizen

merchants as opposed to traditional issuing banks will take the reins of authenticating e-commerce payments. In this way, consumers will be offered a greatly improved online shopping experience with a simple and intuitive checkout that acts as an extension of the retail brand.

The Challenge of PSD2

While each of these transitions will undoubtedly introduce growing pains, PSD2 will be among the most challenging. Europe is already going through PSD2 now, implementing a number of regulations that is opening up competition in banking and electronic payment services. However, on the 1st of January 2021, these regulations will take a legal effect. At the end of the first quarter, so too will another set of regulations concerning 3-D authentication of card-not-present payments. Europe is simply not prepared to make this leap into “open banking”. As such, banks will face a tough year of struggles with regulators and competition from non-traditional quarters.

In fact, the process towards becoming PSD2-compliant is often arduous for banks and recoups hardly any additional revenue. Many banks see it as a competitive disadvantage as they are being forced to open up their systems and processes for the likes of Google, Facebook, Apple and many smaller niche fintech operations. Their valuable client data risks being taken by a challenger and used to on-board their accountholders.

Regardless of the commercial opportunities that open banking may provide, fraudsters will also endeavour to take advantage of this change and the weaknesses that will appear as systems open. With money moving faster, the faster it can be stolen too. We will likely see some reaction to this in 2021 as fraud returns to being a top priority for banks. Yet, whether through regulatory pressure or by market forces, open banking will become the new normal – and the world needs to prepare for this. Hopefully, many lessons will be learned from Europe’s experiences in 2021.

Next year is going to be about change – and managing that change without alienating already unsettled consumers. Organisations that have customer experience top of mind will emerge as winners, but they must nonetheless expect additional pressure from regulators, new competition, ever more digitally-demanding consumers, and no slowdown in technological innovation.

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

Trends influencing the 2020 data storage landscape includeAI, mass adoption of hybrid cloud, object storage at the edge, and cybersecurity Trends influencing the 2020 data storage landscape includeAI, mass adoption of hybrid cloud, object storage at the edge, and cybersecurity
Technology24 mins ago

Holding Cloud To Account, How Cloud Adds Up In Financial Services

By Dom Poloniecki, General Manager, Western Europe and Sub-Saharan Africa at Nutanix Cloud computing and the deployment of increasingly cloud-native...

What’s in store for Financial Services in 2021? 7 What’s in store for Financial Services in 2021? 8
Finance36 mins ago

What’s in store for Financial Services in 2021?

By Miroslava Betinova, Head of Strategic Sales at PPS If there is anything that 2020 taught us, it is the...

Iron Mountain 2021 Outlook 9 Iron Mountain 2021 Outlook 10
Top Stories40 mins ago

Iron Mountain 2021 Outlook

By Stuart Bernard, VP of Digital Solutions at Iron Mountain The Covid-19 pandemic is continuing to rewrite the rules governing...

Capital Markets: The Last Frontier for Digital Transformation in Financial Services 11 Capital Markets: The Last Frontier for Digital Transformation in Financial Services 12
Trading56 mins ago

Capital Markets: The Last Frontier for Digital Transformation in Financial Services

By Dr. Avtar Singh Sehra, CEO, Nivaura The last decade has seen financial services undergo vast digital transformation. New technologies...

Worldline launches Data as a Service platform for online payments 13 Worldline launches Data as a Service platform for online payments 14
Finance1 hour ago

Worldline launches Data as a Service platform for online payments

The new service enables users to do more with their data and is paving the way for a more insightful...

Jack Henry shares six areas of focus for financial institutions in 2021 15 Jack Henry shares six areas of focus for financial institutions in 2021 16
Top Stories2 hours ago

Jack Henry shares six areas of focus for financial institutions in 2021

Reflecting back on 2020, the community banking and credit union industries should be proud of how this unprecedented pandemic and...

Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues 17 Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues 18
Business19 hours ago

Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues

-Survey of 1007 SMEs in the UK by Spitfire Network Services Ltd reveals pain points for employees working from home-...

Employee Ownership Trusts increasing in popularity amid a backdrop of continuing uncertainty 19 Employee Ownership Trusts increasing in popularity amid a backdrop of continuing uncertainty 20
Finance19 hours ago

Employee Ownership Trusts increasing in popularity amid a backdrop of continuing uncertainty

With 2020 behind us, the impacts of the COVID-19 Pandemic and Brexit are still being felt throughout the economy, and...

How the application network unlocks open banking’s future How the application network unlocks open banking’s future
Banking20 hours ago

Open Banking: the perfect pandemic tool – Equifax comments

With COVID-19 related financial fallout set to dominate the credit landscape in 2021, Dan Weaver, Open Banking Expert at Equifax...

How can we benefit from mandated e-invoicing? 21 How can we benefit from mandated e-invoicing? 22
Business22 hours ago

How can we benefit from mandated e-invoicing?

By Mark Stephens, the CEO of Blackstar Capital Electronic invoicing is at a tipping point. On the one hand, only...

Newsletters with Secrets & Analysis. Subscribe Now