But is it really a new era for SME commercial/industrial finance?

You can’t have failed to be aware of the new ‘Open Banking’ regulations that will begin to be rolled out later this month, but are they a good thing or a threat?  According to the Sunday Times they say that the new ‘Open Banking’ process could help small businesses in particular to gain quicker access to the vital commercial/industrial finance they need.

In a nutshell, these new regulations will require banks to share customers’ data with third parties, but only if requested to do so.  It is claimed that this increased exchange of customer data will enable lenders to speed up decision-making and provide much-needed commercial/industrial finance far quicker than the present system permits.

Another benefit, it is claimed, is that SME owners will experience a much-reduced workload than presently required to secure the commercial/industrial finance they are looking for.

So at first glance ‘Open Banking’ appears to be a win/win strategy.  But is it really?  Many business people are nervous about their data being shared with third parties.  While others worry that the openness of the new regulations could increase a small firm’s vulnerability to hackers.

Even the bankers themselves are warning that consumers could be at a higher risk of data theft under the new rules.  The Times cites evidence from its research that as many as two-thirds of people would be reluctant to see their data shared with third parties.

At Synergy Commercial Finance we are closely watching the situation and for the present at least we are keeping an open mind on ‘Open Banking’.

Yes, we agree that any move to speed up decision-making and enable companies to obtain much needed commercial/industrial finance quicker has to be a good thing.  But only if the process is proved to be secure.

Our compliance capacity and the FCA authorisation process ensures that our network of finance brokers diligently abide by the most stringent industry standards for data protection.  Likewise our unrivalled funding panel, now numbering over 150 High Street and specialist market lending sources, is also fully regulated.  Being able to access the necessary customer data more quickly should, in theory at least, enable decisions to be made with fewer protocol delays and in turn for the commercial/industrial finance to be made available more quickly.

Like others we will be closely monitoring the situation and we have already begun to implement additional procedures that are designed to safeguard the security of our clients.  Only time will tell if ‘Open Banking’ is a wise move … but you can rest assured that we will know and will be advising our clients if there are any signs of problems.

If you have any concerns about ‘Open Banking’ and would like to discuss them with us, why not contact us now?  You can call us on 01904 481 786.    You can also email: enquiries@synergy.finance or you can send a message using the online form on our Contact page.


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