UK200Group members comment on Atom Bank automating loans for SMEs
Members of the UK200Group of independent accountancy and law firms have today commented on news that Spanish bank BBVA has acquired a 29.5% stake in the UK’s first digital-only lender, Atom Bank. Mark Mullen, the chief executive of Atom Bank, told The Times that the company plans to reinvent small business lending through technology. It will achieve this by fully automating applications and approvals, as well as credit decisions. Mark said:
“The SME lending process is slow and cumbersome at the moment. It takes weeks and we think we can cut it down to days and ultimately cut it down to hours.”
Duncan Montgomery, tax partner at UK200Group member firm Whittingham Riddell, said:
“Lending to SMEs is often a rigorous process with local offices saying ‘yes’ and referring to credit who say ‘no’, or local offices trying to ensure the customer meets the credit criteria. This is a huge leap forward and as long as there is both an automated system and one with human input running side by side, SMEs will be better served for it.”
Jonathan Russell, partner at UK200Group member firm ReesRussell, said:
“Slow and cumbersome is probably instilling some level of urgency which is not present in the current thinking of the main clearing banks when it comes to small businesses. Whilst there are now many online loan facilities, it will be new to bring it to the business sector to any great degree. In part, this may be because the banks’ own computer infrastructure, common with many large businesses, is always playing catch-up where as a new player, entirely focused on IT, such as Atom, has the ability to move into a space that the big banks might have only reached consultation stage. Many new businesses are part-time and inspirational and much is done by the modern generation online as that suits their methodology and time availability. How successful Atom is will depend upon marketing and availability of funds and BBVA’s involvement is good news. Whilst Atom may well be equally risk averse in its lending profiling, it could open the door to those who no longer consider the traditional banker, who might make the advance, and stimulate a whole new business funding option.”
