Market Invoice co-founders Ilya Kondrashov, left, in addition to Anil Stocker, right.
A digital invoice finance platform from the U.K. will provide business loans to its customers for the very first time, the idea was announced Wednesday.
Financial technology company MarketInvoice enables businesses to sell their unpaid invoices to provide working capital.
The firm said the idea would likely expand into the business lending market, pitting the idea against established players such as U.S. listed peer-to-peer lender LendingClub in addition to Britain’s Funding Circle. The latter raised £82 million ($100 million) in funding through venture capital investors earlier This kind of year.
Peer-to-peer lenders connect lenders to borrowers through an online platform. Businesses apply for a loan in addition to are matched with an investor. They then repay the loan to the peer-to-peer platform, which is actually then distributed to the investors.
CEO in addition to co-founder Anil Stocker told CNBC which MarketInvoice will take advantage of an incoming European Union regulation called the Second Payment Services Directive (PSD2), which forces banks to open up data about their customers to third party companies.
“PSD2 is actually a regulatory change which is actually going to be a real catalyst for us because we’re able to get access to SME (tiny to medium-sized enterprise) customer information,” Stocker said in a phone interview Tuesday.
“We can use things like machine learning in addition to artificial intelligence to build better credit scores with This kind of data. I think the banks are starting to realize which This kind of world they’ve had guarded around customer data for so long, right now the idea’s starting to open up.”