RBS bail out fund disburses further £40 million
Atom Bank, iwoca, Modulr Finance and Currencycloud have each been awarded £10 million from the Banking Competition Remedies Board to provide lending or payment services to the UK’s SMEs.
The BCR says it received a total of 76 applications for the Pool C process during an application window between 1 May 2019 and 28 June 2019.
Atom Bank, which has committed to spend an additional £15 million for its own offering, has pledged to roll out a series of new products for the business sector utilising smart contract technology and machine learning capabilities.
- An on-demand working capital facility (delivered in 2020);
- Unsecured term lending that responds dynamically to forecast cash flow and financial health (2020)
- Access to lending secured over business assets (2021); and
- Invoice discounting to provide instant access to cash tied up in outstanding invoices (2021)
Business lending startup iwoca says it will top up the £10 million grant with a further £13 million. The cash will be used to form a new partnership to gain access to the 450,000+ UK subscribers of online accounting platform Xero and open a new regional office with at least 50 staff outside London.
“Winning this grant is a huge milestone for us,” says Christoph Rieche, iwoca’s CEO and co-founder. “We’re confident that we’ll be delivering on our commitment to make £5 billion available to 150,000 SMEs by 2023.”
E-money institution Modulr is also committing an extra £10m of its own funding to create over 64 regional UK jobs More than 80% of the new roles will be deployed to scale its existing Development & Operational Centre in Edinburgh.