New business lending data product launches
Open accounting platform Validis and debt recovery software provider Aryza have teamed up to launch an open finance solution that will help business lenders obtain better-quality financial data from their borrowers.
Validis said there is a growing need across the small- and medium-sized enterprise (SME) lending world for better visibility over cashflow and finances by using data.
SMEs continue to struggle to access finance, Validis said. The firm cited research that showed that 30 per cent of SMEs are rejected by banks and opt for alternative sources of funding including peer-to-peer lenders, invoice financing or credit cards.
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Amid soaring inflation and economic uncertainty, accurate forecasting and cashflow management is even more important, Validis added.
The Aryza Vantage platform uses real-time accounting data provided through Validis, allowing lenders to tailor their services to specific business needs and make quicker, more informed decisions.
“There are numerous research papers indicating that the UK`s SME market is still hugely underserved and there is an obvious need for further innovation within this space,” said Andrea Varga, head of innovation at Aryza.
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“At Aryza, our vision is to address the increasing need to digitise the lending process through access to data and actionable insights, and we’re very excited to partner with Validis to help tackle this pressing issue.
“We wanted to create a truly open finance platform that removes the friction of sharing data and allows both SMEs and lenders to communicate better with each other and financial institutions to become a trusted partner of their customers.”
Read more: Third of SMEs won’t survive without access to finance
Paul Thomas, chief executive of Validis added: “We’re really excited to announce our latest partnership with Aryza.
“We have a very powerful joint-capability that will support banks and lenders to enhance their lending processes, delivering faster access to finance for their customers and attain sophisticated data and insights to provide improved in-life management.
“At a time of economic uncertainty, it’s critical that SMEs get the right support at the right time, and this new capability addresses a prevalent industry challenge faced by many banks and lenders in the UK.”