According to the company, SMEs are a vital part of the UK economy making up 99.9% of the five million private sector businesses in the UK. Stimulating competition in SME lending through the sharing of SME financial data is key in cost and quality of services offered. Lenders will be able to make faster lending decisions with the increased insight available, upgrading their service to SMEs while also helping risk management.
Currently, many SMEs automatically turn to their bank for a loan rather than shopping around. One of the key aims of the legislation is to enable the alternative lending market, for example peer to peer lenders, crowd funding platforms, and challenger banks to have better access to SME data in order to better service this sector.
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