B2B LendTech platform Trade Ledger and 10x Banking,  the transformational cloud-native SaaS core banking platform, have partnered to offer banks and alternative lenders a modern, composable banking proposition that helps banks provide working capital to small to mid-sized enterprises.

This new partnership expands 10x’s commercial banking offering and supports Trade Ledger’s strategy to connect to all major modern and legacy core banking systems. It also supports both firms’ ambitions to support the transformation of the global banking industry.

"We are excited to partner with Trade Ledger to transform the lending and account creation process”, commented Frederico Venturieri, VP and Global Head of GTM and Partnerships at 10x. “Automating integration between credit applications and account creation allows banks to deliver a superior customer experience, while also driving operational efficiency. This collaboration reflects our shared vision of leveraging technology to revolutionise the business banking landscape."

Alan Walsh, VP of Channels for Trade Ledger added: "Partnering with 10x is an important milestone for Trade Ledger. Combining our lending automation capabilities with 10x’s core banking expertise, we can redefine how financial institutions onboard customers and manage the lending process. We are proud to contribute to the digital transformation of the banking industry and deliver enhanced customer experiences and look forward to developing our strategic partnership and joint solutions further in future."

The joint solution enables banks and alternative lenders to bring complex working capital products such as invoice, receivables and supply chain finance to market with unprecedented speed. Through a real-time  API connection between Trade Ledger's data platform and the 10x SuperCore platform, approved credit applications can be automatically linked to the creation of a 10x customer account. Trade Ledger manages the loan application, risk assessment and risk and collateral management processes, and 10x manages account opening and the credit account life cycle.

10x’s SuperCore is delivered as a managed-SaaS platform, providing financial institutions with a resilient, regulation-agnostic, and highly-available core banking platform. By leveraging 10x’s API-first design and partner ecosystem, banks can bring solutions to market in hours, instead of months. For its part, Trade Ledger has been able to accelerate the application to delivery time for working capital loans from 90 days to 48 hours.

Trade Ledger will play a crucial role in managing the onboarding and origination processes. Leveraging its expertise in lending automation and portfolio management, Trade Ledger's platform will seamlessly capture and process customer data, enabling a faster and more accurate assessment of credit applications. By automating these processes, Trade Ledger enables financial institutions to accelerate loan origination and enhance risk assessment, improving overall operational efficiency.

Such efficiency is critical to closing the global working capital credit gap, estimated to be $30 trillion. SMEs, the engines of economic growth worldwide, have been the hardest hit. According to the World Bank, SMEs account for about 90% of businesses and more than 50% of employment worldwide and 40% of GDP growth in emerging economies. However, access to finance is a major obstacle to their growth.

High acquisition costs have historically made this market less attractive to lenders, while difficulty navigating complex and lengthy application processes has discouraged would-be applicants. According to recent research more than 50% of applications fail*. Decreasing hurdles to account opening and increasing access to capital are critical for advancing financial inclusion. This partnership increases operational efficiency and reduces technology cost of ownership, allowing banks to capture the working capital lending market opportunity.