iwoca Reaches Profitability

iwoca Reaches Profitability
10.07.2018 09:26 am

iwoca Reaches Profitability

Banking

iwoca, one of Europe’s largest alternative small business lenders,
today announces it reached profitability in the first half of 2018 amid a doubling of revenue
over three successive years.

iwoca launched in 2012 and has since lent £500m to 20,000 businesses. To meet soaring
demand from its small and micro business customer base, iwoca lent a company-record £2.2
million to 137 businesses in a single day at the end of June 2018, funding small businesses
with more than £1,500 per minute.

The alternative lender uses technology to reduce traditional underwriting costs by up to 90%
and has seen 100% year-on-year growth in each of the last three years. The company’s stated
aim is to finance 100,000 business over the next five years.

iwoca’s award-winning technology allows businesses to get approved for a credit line within
minutes through a simple online application process. Customers can draw down the funds as
required 24 hours a day. In Q1 2018, iwoca’s credit line represented ca 9% of the total number
of business overdrafts approved by the members of the British Bank Association, according
to UK Finance.

The increase in lending comes at a time when the overall value of debt products provided by
traditional banks for small businesses is contracting. According to UK Finance, the value of
gross lending to small businesses fell by 13% since Q4 2011, while the total number of VAT
registered small businesses increased by 28% to 2 million over a similar period.

Christoph Rieche, Chief Executive of iwoca, said: “We are building Europe’s leading tech-
enabled small business lender, eliminating the barriers banks have put up to small business

finance - the cumbersome paperwork, long waiting times and unfairly rigid lending criteria - so
that small businesses can get access to the funding they need to realise their full potential.”
“Achieving profitability demonstrates the strength and depth of our business and marks a
significant milestone for iwoca. We have built a strong and trusted brand with a solid customer
base. This is just the beginning as iwoca aims to finance 100,000 more small businesses in
the UK over the next five years.”

Related News

CaixaBank introduces the world's first facial recognition to withdraw cash at ATMs

CaixaBank has become the world's first financial institution to offer its customers the ability to use facial recognition to withdraw cash from ATMs, without having to enter... Read more »

The First Norwegian Bank Selected to Demo at Finovate

... Read more »

AdviceRobo Unveils JACQ at FinovateEurope

 

Credit risk assessment innovator AdviceRobo demos at FinovateEurope... Read more »

Temenos strengthens its Executive Committee

Temenos AG (SIX: TEMN), the banking software company, today announces it is strengthening its Executive Committee, having already announced outstanding Q4 and full year 2018... Read more »

Advapay Digital Banking conference in Tallinn was a success

On February 8, Advapay held its next conference in Tallinn on “Digital Banking: Electronic Money and Cryptocurrency. Regulation vs technology”.

The venue was not chosen... Read more »

Mastercard Selects Token.io as a Partner for its New Open Banking Hub

Turnkey open banking platform provider, Token.io Limited, today announces it has been selected by Mastercard to power the connectivity layer of its open banking hub. The hub... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App