FinTech startup iwoca has become the first startup lender to release Open Banking services to small businesses after it announced a successful integration with Lloyds Bank.

Under the Open Banking Initiative, iwoca, which offers credit facilities to small businesses in the UK, Germany and Poland, will enable users with a Lloyds Bank account to securely link their account data and upload up to five years of transaction history to Iwoca via the Open Banking API.

iwoca claims the Lloyds link-up will reduce the time customers spend submitting bank information to support a credit application to under a minute.

iwoca was an early participant in the Open Banking initiative which launched in January 2018 and formed a dedicated Open Banking team to seize on the potential for third party services it can create for customers.

Christoph Rieche, chief executive of iwoca said the company expected to launch future integrations with major UK banks including Barclays, HSBC, RBS, and Santander in the coming weeks.

He said: “Open Banking means high street banks no longer have a monopoly on transaction data. As a result, it’s now easier for small businesses to shop around and find the best financial service to meet their needs, without worrying about the brunt of loan application processes.”

Imran Gulamhuseinwala, from the Open Banking Implementation Entity (OBIE), said iwoca’s integration marked a “milestone” in the progress of Open Banking.

He said: “Products and services powered by Open Banking will, in time, transform the way people and businesses access financial services in the UK.

“iwoca has seen and seized the opportunities that Open Banking can bring and has been a key player within the ecosystem from the start – engaging with banks and collaborating with other third party providers.”

Launched in the UK in 2012, iwoca provides payday style short-term loans of up to £200,000 to small and micro businesses.

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