16 July 2018
Visit www.avoka.com

TSB launches lending marketplace for small businesses

28 March 2018  |  13489 views  |  0 tsb

Challenger bank TSB has unveiled its latest weapon in the fight against Britain's high street giants, a business marketplace where SMEs can compare financing options from a host of lenders in one place.

Small business banking is dominated by the big banks that control over 90% of the market between them. TSB claims that many small businesses only approach the largest banks when seeking finance, and that a large number of these applications are rejected - in the case of first time start-up borrowers the rejection rate is around 50%.

TSB is working with FundingOptions to launch the Business Marketplace in May, helping small firms scan the market in minutes. The bank says that it is the only lender in the market that lets companies compare options from other providers alongside its own offers.

Richard Davies, director, commercial banking, TSB, says: "There is a huge funding gap for small businesses that exists in the UK today and it is stunting the growth of these firms and stopping them from investing to grow. Bringing more competition to UK banking is in our DNA, and Business Marketplace will allow a small business owner to easily compare what’s available in the market."

The bank is also gearing up to launch a digital lending platform, offering millions of pounds to firms that will be able to apply and receive instant credit checks and approval online.

TSB, which was spun off from Lloyds on government orders in 2013 before being bought by Spain's Sabadell Group in 2015, has become a vocal critic of the dominance enjoyed by a handful of UK banks. Last year it called on the Competition and Markets Authority to fix the UK's "broken banking market" by making it easier to switch bank accounts and derided the much-vaunted Open Banking revolution.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

TSB lambasts competition watchdog for failing to fix "broken" banking market

TSB lambasts competition watchdog for failing to fix "broken" banking market

10 August 2017  |  6096 views  |  3 comments | 5 tweets | 2 linkedin
Customers want online and branch banking - TSB

Customers want online and branch banking - TSB

06 July 2015  |  9247 views  |  1 comments | 12 tweets | 12 linkedin
Sabadell agrees £1.7 billion takeover of TSB

Sabadell agrees £1.7 billion takeover of TSB

20 March 2015  |  5591 views  |  0 comments | 5 tweets | 6 linkedin
TSB wades into bank branch debate

TSB wades into bank branch debate

26 February 2015  |  6754 views  |  0 comments | 6 tweets | 11 linkedin
Lloyds 'seamless transition' to TSB comes unstuck

Lloyds 'seamless transition' to TSB comes unstuck

09 September 2013  |  7488 views  |  2 comments | 4 tweets | 1 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://secure.vasco.comVisit www.aciworldwide.comVisit http://go.jumio.com/finextraAd

Who is commenting?

A Finextra member Finextra Member Commented on: Mastercard enlists Wor...
Suresh K Suresh K Commented on: I am the password
A Finextra member Finextra Member Commented on: Mastercard enlists Wor...

Top topics

Most viewed Most shared
Handelsbanken trials micro contactless cardsHandelsbanken trials micro contactless car...
9812 views comments | 18 tweets | 30 linkedin
Championing financial inclusion and helping the UnstoppablesChampioning financial inclusion and helpin...
8356 views comments | 3 tweets | 1 linkedin
PayPal ready to spend $3bn a year on acquisitionsPayPal ready to spend $3bn a year on acqui...
8245 views comments | 13 tweets | 17 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
7806 views comments | 6 tweets | 14 linkedin
Faster Payments outage delays thousands of transactionsFaster Payments outage delays thousands of...
7160 views comments | 8 tweets | 19 linkedin

Featured job

to GBP £90K base, double OTE (estimate)
London, UK or Europe

Find your next job