Previse among fintech firms sharing £20m grants
Fintech firms are helping SMEs
Six fintech firms serving the UK’s small and medium sized businesses have picked up a total of £20 million in grant support from the Banking Competition Remedies Board.
Glasgow-based instant payment platform Previse together with Codat, ezbob, and Fractal Labs were each granted £2.5 million, while Funding Xchange and Onfido each received £5m.
BCR said it received 92 applications from 67 applicants for the fund which is intended to boost the commercialisation of financial technology relevant to SMEs.
The new tranche of funding follows the return of almost £100m from previous awardees Nationwide and Metro Bank, which both pulled back from their commitment to the SME market due to challenging market conditions.
The next round of cash hand outs from the fund have a combined value of £80m, and will be announced on 21 September.
Paul Christensen, CEO of Previse said: “With the BCR funding and collaboration with the FSB, we will be able to get more SMEs paid instantly: reducing the need to resort to other expensive forms of finance. Our top priority is getting working capital to small businesses, to provide the immediate cashflow support they need.
“To do this, we must create a change to the payment culture across the UK.
“We are calling on government, large corporates, organisations that represent the interests of SMEs, and the public, to join us in creating a movement that ensures every SME has the option of immediate payment, whenever they issue an invoice.
“The current climate makes it more important than ever to act now.”
Pete Lord, CEO at Codat said: “Developers, not bankers, are going to be the people to build the financial products we need for small businesses here in the UK. BCR has recognised that by awarding this money to Codat, they are benefiting potentially hundreds of products instead of just one.
“With BCR’s backing we’ve been able to move much quicker, to ultimately help support British SMEs – and right now, that’s never had more significance. It’s hugely encouraging to see our strong progress recognised alongside the new set of innovators awarded in this latest round.”