This allows the FinTech provider to carry out consumer credit lending (including high cost short term credit lending) to APS financial’s customer base of micro SMEs, sole traders, and consumers.

APS financial, the leading provider of digital banking services, is one of the few alternative finance providers that now holds both FCA e-money and credit licences, allowing it to offer a wide suite of services and lending products that have traditionally been reserved for the high street banks. Capabilities within the lending arm range from traditional credit cards, account overdrafts and loans, to specific innovative credit products, such as Debit Protect and iAdvance credit.

Debit Protect is a unique solution that provides instant one-off loans to customers who are predicted to have a direct debit fail on the following day. This capability has improved qualified customers’ Direct Debit success by 50%. In contrast to the practices of many traditional finance providers, this service helps APS’ customers avoid being caught out by surprise fines when exceeding their overdraft. In addition, APS offers a fast alternative to the laborious process usually encountered when opening an account with a high street bank. APS has the ability to leverage open data sources and credit bureau data to facilitate account decisions in minutes, not hours.

With this credit licence approval, APS is leading the charge to reduce the barriers to digital financial services for customers by eliminating the typical hurdles that consumers and small businesses often face today. For the past decade, APS has been systematically removing unnecessary barriers to financial services whilst maintaining strong governance procedures. The company now offers an even wider selection banking services without having to become a bank.

Securing the credit licence is a real testament to APS’ robust compliance procedures. The company underwent a rigorous FCA approval process, which has already reportedly seen 5000 firms drop out before completing their application for full permission.

Rich Wagner, CEO and Founder, comments: “At APS financial we pride ourselves on offering a wide range of fair and transparent financial services to our customers in a more cost-effective and efficient way. This credit licence now completes our suite of financial licences, allowing us to conduct complete banking services, standing as proof that you do not need to be a bank to offer banking services. As I have professed before, never has the word ‘bank’ been so easily divorced from ‘the provisions of banking services’. For small businesses and consumers that are fed up with the traditional barriers faced when operating with a high street bank, APS now offers all of the main services of a bank, while maintaining the flexibility to ensure that the process is faster and cheaper.”