The FinTech Impact Report: Working through the world’s to-do list #FinTechforProductivity 03 | INCREASING ACCESS TO FINANCE 35% of FinTechs are Over 50% of all UK SME delivering products and finance is provided by FOR SMEs AND SUPPORTING services that are directed at FinTech challenger banks and significantly impact and alternative finance 78 79 ENTREPRENEURSHIP other SMEs. providers. One of the most transformative impacts of FinTech has been its provision of services to SMEs. Most notable is its Fast flexible debt finance for the ‘Missing Middle’: OakNorth financing takes a more efficient provision of finance, which traditional banks have forward-looking and data-driven approach to credit decisioning, providing historically struggled to achieve due to the often complex businesses with access to fast and flexible debt finance ranging from £250k to tens nature of the offering and the urgency of the need. of millions of pounds. Since its launch in 2015, OakNorth has lent c.£10bn directly helping with the creation of 37,000 new jobs and 27,000 new homes across the UK. A number of FinTechs have identified and quickly bridged A leading business financial platform in the UK: Tide helps SMEs save time (and money) in the running of their businesses by not only offering business accounts this gap; an example is Iwoca’s digital lending solutions. and related banking services, but also a comprehensive set of highly usable and Moreover, beyond simply providing essential credit, connected administrative solutions from invoicing to accounting. Tide has 550k FinTechs have innovated in the surrounding services that SME members in the UK (10% market share) and more than 150k SMEs in India. help SMEs become more efficient and grow their own businesses. Whether improving their cashflow with invoice Bespoke custom-built financing solutions for small businesses: Iwoca’s partner financing or integrating accountancy tools like Xero, integrations and lending APIs help small businesses gain access to finance when and where they need it. Iwoca has an award-winning credit risk engine that FinTech has furnished SMEs facilitates faster, more accurate credit decisions. This has expanded financing with a plethora of tailored services. possibilities for small businesses. 42