Australian spend management platform Cape is collaborating with open banking platform Basiq on Basiq’s newly launched Startup Launchpad, according to a Wednesday (Sept. 15) press release.
The Startup Launchpad provides early-stage startups with access to real-time financial information, in addition to Basiq’s product suite. As part of the partnership, Basiq’s open banking technology will be integrated into the Cape application and risk analysis process, according to the press release. The integration is aimed at helping small and medium-sized businesses (SMBs) speed up the process of connecting their bank account and immediately verifying their identity, as well as account and income data with Cape. The result, according to the companies, is a quicker credit review, and, in turn, faster access to credit.
The joint effort will also provide Cape customers with Basiq’s open banking technology as part of the loan underwriting process. The real-time financial information helps ensure better accuracy of data, according to the announcement.
“Basiq’s ability to verify account and transaction data in real-time will streamline the onboarding process for Cape’s business customers, as we work together to re-design business spending,” Basiq CEO and Founder Damir Cuca said in the announcement. “This will set the standard for how all alternative finance lenders and banks can enhance the customer experience by utilizing Open Banking technology to convert analogue processes to seamless digital journeys.”
Open banking is becoming increasingly popular in a variety of financial technology realms, especially as a growing number of consumers become more comfortable sharing their personal financial information with third parties. Among the most coveted opportunity areas for open banking, according to a recent PYMNTS interview with Steve Smith, CEO of Finicity, is the lending and credit field, simply because of its ties to all aspects of financial life.
As compared to traditional lending processes which place a greater emphasis on a potential borrower’s debt, open banking also takes into consideration a borrower’s cash flow.
Read more: Finicity CEO Sees Open Banking, Consumer Permission at Core of Lending’s Future
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