Kabbage

Kabbage, a member of the Canadian Lenders Association talks about how data automation is driving lucrative partnerships with traditional financial institutions throughout the globe.

Kabbage empowers small businesses through straightforward, flexible access to capital. Kabbage has extended more than $4 billion directly to small business owners and powered automated funding for other organizations all over the globe.

The industry storyline du jour seems to be fixed on banks vs. fintechs and who will win, given Kabbage works closely with multiple global banks, what’s your take?
Good question. At the end of the day, Kabbage is a tech company. We’re able to quickly assess risk and automate the underwriting for small businesses to get working capital. That’s a task that banks, have a difficult time doing because it’s expensive and labor intensive.
Banks have a storied history of adopting and collaborating closely with technology to improve their services. The difference is today the we have a name for it: FinTech.
Kabbage is able to supply banks with the technology they need to enhance their customer experiences and better manage risk.
Tell me more about the banks you serve today and where they are located?
Today, Santander, Scotia Bank and ING use Kabbage to automate small business lending. We’re active across Canada, Mexico, the U.K., Spain, Italy and France with more to come in LATAM and Asia!
We recently expanded our relationship with ING into Italy and France :)
Do you see data-driven risk assessment and automated lending a staple in the future of banking?
Absolutely. It’s less expensive and more efficient than traditional means. Today, loans are issued based on lagging indicators: tax returns, three months of bank statements, etc. The moment those papers are turned in, the bank is basing a lending decision on old data.
We believe small business owners have a richer, more relevant and appropriate set of data to consider when assessing credit worthiness. And if you pair where a company was yesterday with where it is today, you have a greater understanding of where it will be in the future.
Kabbage has more than 1.5M live data connections across 130K+ SMBs through its direct business in the U.S. Small business owners may connect their banking data, payment processing data, as well as online accounts such as eBay, Amazon, UPS, Xero, QuickBooks and even Facebook.
We see that having an ongoing connection with the daily services they use to run their business gives a more accurate picture of how successful a borrower they will be.