Atom Bank, iwoca, Modulr Finance and Currencycloud have been awarded £10mn each from the Banking Competition Remedies Board.
In brief:
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This is part of the disbursement of £425mn worth of grants from the Royal Bank of Scotland bailout fund to boost competition in banking.
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Atom provides mortgages and savings services via mobile and iwoca provides fast small business loans to improve cash flow.
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Modulr provides digital payments accounts for businesses, while Currencycloud offers payment infrastructure.
What does this mean?
The companies will use the grant money – with iwoca and Atom both pledging to top it up – to develop payments and lending infrastructure for the benefit of SMEs in the UK. SME support has been a huge gap in the market, taken advantage of by a variety of FinTechs including OakNorth.
