Atom Bank, iwoca, Modulr Finance and Currencycloud have been awarded £10mn each from the Banking Competition Remedies Board.
In brief:
This is part of the disbursement of £425mn worth of grants from the Royal Bank of Scotland bailout fund to boost competition in banking.
Atom provides mortgages and savings services via mobile and iwoca provides fast small business loans to improve cash flow.
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.
