Spotcap forms partnership with leading Austrian bank

The deal marks the start of Spotcap’s lending-as-a-service activities.

The deal marks the start of Spotcap’s lending-as-a-service activities.

Alternative lending platform Spotcap has formed a partnership with Bawag Group, marking the start of its licencing business. The partnership, Spotcap’s first within the DACH region, will enable Austrian SMEs to access same-day funding by leveraging the platform’s lending technology and analytics.

Bawag Group is one of Austria’s biggest banks. With subsidiaries in Austria and Germany, it boasts more than 2.5 million customers.

The bank will begin offering Spotcap-powered credit lines (“ExpressFinanzierung”) to targeted customers in the first quarter of 2018. Applications will be fielded online, with decisions made in minutes and the possibility of same-day financing.

Spotcap’s technology has been tailored to the Austrian market and to Bawag’s risk tolerance, with the support of the bank’s own credit experts. Spotcap is less reliant on credit scoring than traditional lenders, focusing instead on cash flow and real-time performance through the use of transaction data. In the case of Bawag, Spotcap will utilise the account transaction history that the bank holds on its customers.

“We continuously invest in our lending platform as well as our state-of-the-art analytics to provide SMEs with the financing needed to run their businesses in the most efficient way,” said Jens Woloszczak, founder and CEO of Spotcap. “The partnership is a testament to what we have achieved developing and operating a direct lending platform across multiple countries.”

These days, many online lending businesses are also in the business of selling their technology to banks hungry for automation and swifter decision-making. In the US, OnDeck has a landmark licencing deal with JPMorgan Chase, while Kabbage has partnerships with banks all over the world.

Spotcap is active as a direct lender to small businesses in the UK, Spain, the Netherlands, Australia and New Zealand. With its first licencing deal in place, the company will now seek further partnerships with major institutions, including both financial services firms and others.

David O’Leary, member of the managing board and head of retail at Bawag P. S. K., commented: “Our strategic partnership with Spotcap is another step forward in Bawag P. S. K.’s digital roadmap, and commitment to continually optimise digital channels and offer best-in-class products, whether through in-house development or strategic partnerships.”