Yolt partners with October to make loan application processes easier and faster

Yolt partners with October to make loan application processes easier and faster

By Joy Dumasia

yolt, the open banking service provider, announced a collaboration with October, an SME lending platform set to go live in France, Italy, Spain, the Netherlands and Germany; This deal will see October use Yolt’s account information services to use open banking data in its credit reporting process for SME loans.

The objective is to increase efficiency by replacing bank statements in pdf format with up-to-date and real-time open bank data. October customers will be able to link their bank accounts to the application point, providing access to a broad profile of their businesses’ affordability and creditworthiness. Since 2016, October has been using non-standard data in the credit underwriting process, making it easier for its customers to access information automatically, quickly and in real time and, therefore, increasing the accessibility of credit to many SMEs. Yolt enables October to leverage Open Banking in its 5 countries of operation with strong local bank coverage.

Commenting on the partnership, Patrick de Nonneville, CEO of Octoberdeclared“As Europe’s leading SME lending platform, we are constantly investing in our own technology but also choosing to buy when it is most efficient. For example, given the importance of banking transactions in our rating and the current low level of adoption of Open Banking by SMEs, we have built our pdf extraction systems in-house; but as this adoption improves, we aim to move to direct connections as much as possible. Yolt’s strong European coverage matches October’s European footprint and enables European SMEs to link their bank accounts so that we can assess a broader credit profile and further accelerate our decision-making process, supporting our mission to better finance businesses.

Yolt and October will demonstrate how open banking can play an increasingly vital role in providing greater financial inclusion for SMEs while easing the process when applying for a loan. Traditionally, credit companies have relied solely on annual accounts and data from external credit bureaus to make credit decisions, leaving many suitable companies without good credit options because the information is outdated and does not give a full picture. Yolt’s open banking data provides a broader profile of the loan applicant and expands options for businesses seeking to access credit.

Nicolas Weng Kan, CEO of Yoltsaid: “We are thrilled to work with October, who are as innovative and tech-obsessed as we are at Yolt. We are confident that this collaboration will help improve the lending experience for SMEs, providing broader credit options quickly and accurately. This not only makes the credit application process faster and more transparent, but also fairer.

“With open banking, businesses have control of their own financial data, and it provides an easier way to verify earnings and demonstrate creditworthiness. We are delighted to be in a position where we can use our experience, being one of the first to start trading open banking and the only pan-European provider, to expand the reach of businesses benefiting from credit rating while making processes more efficient for platforms like October.