ANZ and CBA launch online business lending platforms
Both ANZ and CBA have launched new online lending platforms for business loans that they claim to conditionally approve within 20 minutes.
Two big four banks have launched new online tools to enable SMEs to access finance faster.
ANZ has launched a new online lending platform to provide small businesses with conditional approval for up to $ 200,000 in unsecured loans.
Developed in partnership with DemystData, the new ANZ Online Business Lending platform can synchronize with the accounting software (ASP) platforms Xero, QuickBooks and MYOB to populate loan applications with historical financial information faster.
According to ANZ, the direct-to-customer platform allows you to provide a conditional loan decision in under 20 minutes, with full approval in around 48 hours.
Customers using ANZ’s online business loan application will have access to fixed and variable term loans, as well as overdraft lines, and will be able to apply for loans under the Coronavirus SME Guarantee Program also through the platform.
Mark Hand, executive of the ANZ group, Australia, for retail and commercial banking, commented: “While the current economic crisis will be devastating for some companies, there has also been a great deal of resilience and some will be able to to come out the other side even stronger.We are also starting to see new businesses being created to meet emerging customer needs.
“This sophisticated new technology is deeply integrated with ANZ’s existing platforms to provide our clients with a fast, simple and secure lending experience so they can spend more time managing and growing their business,” Hand said.
Similarly, the Commonwealth Bank of Australia (CBA) has also launched a direct business lending platform to the customer via Netbank and the CommBank app.
BizExpress Online, which was previously only available to CBA corporate bankers, will now be available to CBA’s existing SMB customers (those with revenues of less than or equal to $ 50 million) through these two channels.
In its initial phase, BizExpress Online will only offer new commercial loans under the coronavirus government’s SME guarantee scheme. As such, the platform will allow users to access unsecured loans for a period of three years. Repayments will be deferred for the first six months and all fees waived for the duration of the loan.
CBA outlined that the platform will be extended to offer a wider range of products, including those outside the Coronavirus SME Guarantee Scheme, “in the coming months.”
According to CBA, the platform will be able to provide a credit decision in real time and could see loans of up to $ 50,000 credited to customers within 20 minutes.
Rates start at 4.5 percent, the leading bank said.
Mike Vacy-Lyle, CBA Group Business Banking Executive, commented, “When we launched BizExpress, the goal was to provide a simpler and faster lending experience for our small business clients, with decisions and financing in the same day within a week.
“We continued to invest in our technology platforms, making further digital enhancements to loan application, and earlier this year we used BizExpress to rapidly provide loan support under the government’s Coronavirus SME Guarantee Scheme.
“Our latest investment in the new digital version makes it even easier and faster for our clients to get the financial support they need,” he added, noting that it helps deliver a loan decision in “record time”.
“Small businesses need quick access to cash flow to cope with these tough times, and BizExpress Online aims to deliver that to them,” said Vacy-Lyle.
According to the bank, the BizExpress platform was used by CBA bankers to process around 80% of the 8,000 CBA applications for the government guarantee system. These SMEs have secured approximately $ 700 million through this channel.
NAB has launched a similar offer, QuickBiz, in 2017, making it available to the broker channel a few months later. Westpac also offers customers unsecured loans of up to $ 75,000 via its online banking platform for those with 12 months worth of claims.
CBA and ANZ’s move to launch digital lending platforms for SMEs comes as more lenders embrace application programming interfaces (APIs) and audit service providers (ASPs) to accelerate credit decisions in loans. to businesses.
This week, accounting software giant Xero revealed it was set to break into SME lending from acquisition of the Waddle invoice financing platform, which leverages accounting data from Xero, MYOB and QuickBooks to offer credit lines based on a company’s invoices.
The Sydney-based fintech also holds existing agreements with banks and lenders in Australia and the UK to help automate their invoice financing arrangements.
The acquisition is in line with Xero’s strategy of growing the platform for small businesses and “addressing the critical financial needs of small businesses.”
As the acquisition marks the first phase of Xero’s foray into SME lending, the cloud-based accounting software company said it will work with Waddle to “explore ways to expand [its] the access of small business customers to forms of loans in addition to financing on invoice “.
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Annie Kane is the publisher of The Adviser and Mortgage Business.
In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintech and the broader lending landscape, Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.