Business banking platform Tide has made its first acquisition, scooping up SME credit marketplace Funding Options.
The acquisition will give Tide’s 475,000 customers access to Funding Options’ panel of more than 120 lender partners.
Funding Options' cloud-based platform uses data analytics, open banking APIs and artificial intelligence to auto-decision the approval of loans. Loan application to credit approval can take just 20 seconds, with the record for application to funds in an SME’s bank account just 18 minutes. Since 2013, Funding Options has ganted £680 million in business loans.
Oliver Prill, CEO, Tide, says: “Easy access to funding is essential to support the growth of the UK’s small businesses, especially in these challenging times. Securing finance is often an issue for small businesses, but Funding Options ensures there are no confusing products, complex application forms and long waits."
Under the deal, Funding Options will continue to operate as a separate brand within Tide. Tide’s existing credit intermediation business will be merged with Funding Options and will be led by Funding Options CEO, Simon Cureton.
The acquisition may be Tide's first, but it won't be the last says Prill.
"As we look to expand in the UK and globally, we will consider further acquisitions to accelerate our growth and add to the services and products we offer our members," he says. "We aim to be a sector leader in the fintech merger and acquisition space against the backdrop of fast-moving market dynamics globally.”
Terms of the transaction were not disclosed.