Starling Bank has revealed the first details of the unsecured business loan offering that it plans to launch.
Speaking to Specialist Banking at the RFi Group Global Business Banking Summit, Stuart Doignie, head of SME banking at Starling, said that the bank is hoping to introduce unsecured business loans later this year.
Stuart claimed that he could see the mobile bank providing these loans around the £5,000–250,000 mark.
However, this would depend on the traffic it generates, with Stuart not being deterred from pushing deals to £500,000 if it had businesses of that size on its platform.
He added that as Starling was a digital offering, the vast majority of its customers would be at the smaller end of the market and would probably be “less complicated” SMEs.
Stuart said that the bank wanted to bring automation to most of its lending decisions.
“We don’t think we’re going to automate every lending decision, I think you’d be crazy to think that.
“But we want to obviously get to a point where we can deliver [as much] of that decision and experience as we can in an automated way.”
The bank currently has underwriting capabilities, but is set to hire additional people as it looks to offer unsecured business loans.
“So, we want to be driven by automation wherever we can, but we do recognise that there will always be exceptions to the rule where we need to have someone who can manually look at something for a customer.
“Whether it be an appeal to a decision, or perhaps looking to some of those more extenuating circumstances.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Redefining banking: AI
This is an exciting time for financial services as a new era of interrelated technologies, including artificial intelligence (AI), robotics, blockchain, machine learning, cloud computing and data science, are causing widespread technological and digital disruption in the industry...
Apple introduces Apple Card
Apple has announced the creation of its first credit card 'Apple Card', which will be made available in the US this summer...
FCA proposes changes to help mortgage prisoners
The FCA has proposed changes to how lenders assess the affordability of a loan...
Hanley Economic BS strengthens shared ownership range
Hanley Economic Building Society has bolstered its shared ownership product range through the addition of a no-fee, shared ownership variable discount mortgage for term with a headline rate of 2.89%...
Al Rayan Bank confirms appointment of new CCO
Al Rayan Bank has appointed Maisam Fazal (pictured above) as chief commercial officer (CCO)...
AI Rayan provides £228 million of property finance to expats
Al Rayan Bank has announced that it has financed £228m in residential property finance to UK nationals living and working overseas...
Vanquis Bank names new MD
Provident Financial PLC has announced the appointment of Neil Chandler (pictured above) as managing director at Vanquis Bank...
Wyelands Bank hires two new regional directors
Wyelands Bank has made two additions to its working capital solutions team...
Triodos Bank reports 17% growth in sustainable lending
Triodos Bank has reported a 17% year-on-year growth in sustainable lending for the year ended 31st December 2018...
Tandem introduces new savings account powered by AUTOSAVINGS
Tandem has launched a new savings account which pays 0.5% interest...
Project BankNorth picks nCino to provide digital banking platform
Project BankNorth has partnered with cloud-banking fintech nCino...