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The non-bank lender is to roll out a new data-driven lending platform powered by Trade Ledger, in a bid to accelerate SME loan approvals.
Non-bank lender ScotPac has partnered with business lending technology provider Trade Ledger to create a new origination and underwriting experience for business funding.
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The system harnesses the Sydney fintech’s Lending-as-a-service (LaaS) platform and utilises open banking data and analytics to provide more data to credit assessors more quickly, which can accelerate approvals.
The Trade Ledger platform has been piloted on ScotPac’s asset finance offering over the past year and has reportedly helped achieve a 90 per cent reduction in application turnaround times and a 300 per cent growth in new business volume.
The platform will now be used for every product offered by ScotPac – including debtor finance, asset finance and trade finance – across all channels.
More speed and transparency for brokers and their clients
According to the non-bank, the system helps reduce processing times for both simple and complex loans, with chief executive Jon Sutton stating: “[A] deal that might have taken five to 10 days of checking we can now do within 24 hours and with real-time status updates”.
He provided the example of a Queensland transport business recently having applied for debtor finance [and] “in 30 minutes on a Monday we synced all application data and provided same-day formal approval, with funds for a $1 million limit facility available by Tuesday”.
“It’s a real game-changer,” Mr Sutton said.
The ScotPac CEO said that the new platform also makes applications easier and more transparent for businesses, while brokers can access an online portal to see the progress of their clients’ deals in real-time.
“Brokers, accountants and our other partners will get quick decisions, with more visibility and therefore more control of where you are in the process,” Mr Sutton said.
“[They] will get real-time notifications on deal progress, and easy upload capability if [they] have to provide extra information.
“[Brokers] will be able to give [their] clients a clear and simple understanding of what’s expected when they apply for funding.
“This partnership gives ScotPac one of very few origination platforms able to run across multiple products, so our customers can quickly access the right product for their business.
“It provides ScotPac clients and introducers with the technology and speed of a fintech, giving each business more control and visibility over their funding deals, but unlike fully online lenders we remain able to handle complex transactions.”
According to the non-bank, the platform also enables assessors to have a more holistic picture of the borrower “at a glance” and can put in place pre-approved limits should the client need additional funding in future.
Speaking of the partnership, Trade Ledger founder and CEO Martin McCann said: “Our technology and business data insight, paired with business finance experts like ScotPac, is accelerating and transforming business finance – focusing in particular on the SME and mid-market lending experience, unlocking economic growth with better lending products.
“The partnership demonstrates how effectively our platform can help a lender grow their business.
“Trade Ledger’s platform goes beyond open banking. Our ability to match a lender’s customers with the right services and bring new propositions to market quickly is key to our relationship with ScotPac and transforms how business finance can be accessed.”
A digitisation overhaul
ScotPac has been on a digital transformation in recent months, with more tech initiatives expected to roll out in near future.
After last year appointing Mr Sutton to take over from long-term CEO Peter Langham, the lender unveiled a new brand design and logo, moving to its shortened name of ScotPac.
The non-bank – which has historically been known as a debtor finance specialist – has also been on a new growth and strategic push in the past year, having looked at several acquisition options and rolling out new products.
“Even with great digital experiences, businesses want and need flexibility – they don’t want to deal with a lender that is a ‘one size fits all’ sausage factory,” Mr Sutton said.
“ScotPac’s investment in technology is allowing us to make nimble decisions to quickly understand each business and make an accurate call on funding.
“ScotPac can handle complex requests to get deals done, and really partner with clients, rather than just make algorithm-based digital decisions about whether or not to fund them.”
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