Multifi integrates with Plaid to simplify SME finance applications

A new strategic integration between finance solutions provider Multifi and data network Plaid aims to reduce the length of time it takes for UK small businesses to apply for finance.

It follows a recent study by the Federation of Small Businesses which found that 62% identified lengthy finance applications as a significant barrier.

Using Plaid’s Open Banking technology, Multifi will be able to evaluate the financial health of small businesses by analysing their financial activity from various banks, including Barclays, HSBC, Lloyds Bank, Halifax, Santander, NatWest, and Monzo.

The partnership is intended to streamline the application process by reducing the time and effort it takes for small businesses to apply for financial support, and enabling more personalised financial services for SMEs.

One example of this is that Multifi can identify opportunities for extending credit limits based on company performance.

Rob Keown-Boyd, Multifi’s chief executive officer, said: “By collaborating with Plaid, we are not just simplifying the finance application process; we are fundamentally changing how UK SMEs access and manage their finances.

“This is about offering a faster, more intuitive, and secure way for businesses to grow and thrive, especially during these challenging economic times.”

In November last year, Plaid established a new entity to build solutions for customers who want “ready-made credit risk insights from consumer-permissioned cash flow data”, with the new entity to operate as a consumer reporting agency.

Prior to that, Plaid teamed up with US-based Fiserv to enable data sharing through APIs, so that consumers and financial institutions can access their financial information.