This week a new referral scheme, that has been in the works for two years, launched in the UK. It was an initiative started by the UK government and aims to expand access to credit to small businesses. The way it works is pretty simple. If a small business seeking a loan is rejected by any of the nine largest UK banks, they must refer the small business to an aggregator platform, who in turn will provide options to the borrower from various online lenders. The aggregators are currently Funding Xchange, Business Finance Compared and Funding Options.
While this kind of government initiative is unlikely to happen in the US, it’s still relevant when we talk about
A perfect example of a bank looking to better serve all customers, regardless of credit profile is the recent partnership between
A partnership involving referrals is a win-win for the bank and the platform. Most importantly the customer is being better served by their bank. While there have been many bank partnerships announced over the last year we believe that 2017 will be the biggest year yet for bank partnerships with fintech companies.
If you’re interested in learning more about bank partnerships, LendIt, a sister company to Lend Academy is hosting a LendIt Forum titled Taking on Current Challenges to Bank Partnerships and More. It is a
- Business structuring and decisions that address “true lender”, Madden v. Midland and other challenges
- Emerging platform alternatives to direct lender and bank partnership models
- Different ways fintech companies and banks can partner
- Impact of recent litigation and enforcement actions
Speakers include Manny Alvarez, General Counsel & CCO of Affirm, Richard Neiman, Head of Regulatory & Government Affairs at Lending Club and Kevin Lewis, Head of Business Development at Avant.
You can view more information and signup on the