How the fintech industry can boost economic growth in the UK by helping SMEs

Technological innovation is a main driver of progress. From the creation of the printing press, which promoted the development of skills, knowledge and innovation, to the use of Industry 2.0, which opened up new sectors and improved communication, record-keeping and global access to information, technological growth goes hand in hand with economic growth.

As such, expenditure on innovation, research and development – as well as investment in innovation – is essential to support continued progress.

It was extremely welcome to see Chancellor Jeremy Hunt in his Budget speech talking about making the UK a science and technology superpower. And the leading role that the country’s fintech industry is already playing in making this a reality cannot be underestimated.

“There are opportunities to accelerate the advancement of the technologies that will define this century by encouraging investment and smarter regulation,” Hunt said, reaffirming the government’s priority for a business-focused economy that attracts and supports the most dynamic and productive companies.

Economic growth increases employment, raises living standards and increases public finances. All of this is crucial to get right if we are to navigate the difficult backdrop of the cost of living crisis, the war in Ukraine and continued inflation.

So how are fintech companies contributing to economic growth and making the UK more competitive on a global stage?

CRIF’s immediate focus is to help UK small and medium-sized enterprises (SMEs) struggling against the tough economic backdrop. Hundreds of thousands of small and micro businesses are at risk of collapse this year, according to recent research, due to financial pressure caused by the crisis. This is because businesses have struggled with higher energy bills, weaker consumer confidence and rising costs for supplies and materials.

Easy access to finance is essential to help businesses not only navigate rising costs, but invest in new products and services that help their businesses grow and help create the tech superpower Mr Hunt outlined in the Budget. But for many SMEs, accessing finance is an unnecessarily difficult process, with burdensome form filling and long decision times, making the barriers to access more troublesome than for larger counterparts.

To help more businesses access the funding they need, CRIF has partnered with iwoca, a leader in business lending, to offer SMEs access to an open bank-driven credit profile through our CRIF credit passport.® service. The service is fully integrated into iwoca’s lending platform, making it easier for SMEs to get instant lending decisions, removing the unnecessary burden and uncertainty caused by waiting for a decision.

Business owners can apply for loans directly through the credit pass® account, with the application pre-filled with information from the credit profile provided by CRIF. It means a loan application can be completed more quickly and efficiently, with a decision on loans of up to £25,000 made almost instantly and the money deposited into an SME’s bank account on the same day. For business owners who need larger loans of up to £500,000, a funding decision can be made within just 24 hours.

With economic uncertainty compounding the already significant challenges of securing funding, small business owners deserve better service when applying for funding. Our new partnership reduces uncertainty for businesses about funding decisions, while making the process smoother and faster.

By speeding up the process and helping SMEs access funding faster, they can focus on what really matters – growing their business. Credit Passport and iowca’s partnership is an example of how important fintech can be to boosting the UK’s economic recovery and ensuring the country becomes a science and technology superpower.