Lloyds Bank is to provide motor dealerships with real-time loan payments through a commercial direct debit API collaboration with Blue Motor Finance.
Co-developed by Lloyds Bank Commercial Banking API Lab, the programme taps the Faster Payment rails to deliver instant loans to motor trader clients of Blue, the four-year old online financing startup which has lent over £1bn to 100,000 customers since inception.
Blue Motor Finance CTO, Charlie Barker says: "For the first time, it will mean that our customers will be able to make critical investment decisions, including at a vehicle auction, for example, with the knowledge that they’ll receive cleared funds in their account, potentially within two minutes."
Lloyds Bank Commercial Banking API Lab has been set up to work in partnership with commercial clients to creative innovative propositions for the digital economy.
Steve Everett, MD, payments and cash Management, Lloyds Bank Commercial Banking says the next step will be to bring instant payments to the car finance market for the first time.
"At the Lloyds Bank Commercial Banking API Lab we’re committed to bringing the full potential of digital to the forefront of financial services," he says. "We’re excited to partner with Blue Motor Finance to bring this innovative instant payments service to its motor trader customers, and create real value for businesses in the car financing industry through new API-enabled solutions."