Innovation Through Collaboration: The BankiFi and Praetura Approach
In a world where small and medium-sized enterprises (SMEs) are often hailed as the backbone of the economy, their continuous struggle to access necessary funding paints a starkly different reality. This narrative has been all too common, echoing through the corridors of financial institutions and businesses’ boardrooms. Yet, amidst these tales of economic woe and aspiration, a beacon of hope shines through the partnership between Manchester fintech company BankiFi and financier Praetura. This collaboration is more than just a business venture; it’s a testament to the power of innovation and collaboration in bridging the gap between traditional banking systems and the dynamic needs of SMEs.
The Genesis of a Unique Partnership
👏 We're excited to announce our new Praetura Lending partnership with @BANKIFI_global, launching a first-of-its-kind platform and lending-as-a-service solution to boost SMEs’ access to growth funding!
The core of this partnership lies in developing a lending-as-a-service solution, a pioneering platform designed to democratise access to growth funding for SMEs. This initiative addresses a critical pain point for small businesses: the stringent eligibility criteria of traditional high street banks that leave many SMEs in financial limbo.
Collaboration at Its Core
By leveraging BankiFi’s technology platform, Praetura delivers asset and invoice finance to SMEs, acting on behalf of banks that cannot support these businesses directly. This strategy enables traditional lenders to cater to the diverse financing needs of SMEs and positions banks as the primary finance providers, creating a symbiotic relationship that fosters growth and stability.
Mark Hartley, CEO and Founder of BankiFi encapsulates this partnership’s essence: “We’ve built great relationships with high street banks due to our bank-friendly distribution model and our ability to leverage the benefits of open banking.”
A Solution Born of Innovation
Peadar O’Reilly, CEO of Praetura Group, further emphasises the uniqueness of this collaboration: “There isn’t anyone in the UK that has the combined senior funding lines, specialist lending expertise, and technology capability to help fund this gap for SMEs in the market.” His words highlight the innovative edge and commitment to meeting the diverse needs of businesses that define the partnership between BankiFi and Praetura.
Addressing the Funding Gap
This initiative arrives at a critical juncture, as research from the Bank of England and Praetura’s ‘Fund the Gap’ report reveals a troubling decline in capital access for UK SMEs over the last five years. The partnership’s solution directly responds to this acute financing crisis, offering a lifeline to businesses that might otherwise remain unserved and fall through the cracks of the banking system.
The Human Story Behind the Collaboration
Beyond this partnership’s technicalities and strategic implications lies a human story of resilience, ambition, and the relentless pursuit of growth. SME owners, often grappling with the challenges of managing cash flow and securing growth funding, find a glimmer of hope in the solutions provided by BankiFi and Praetura.
Envisioning a Bright Future
As we reflect on the significance of this partnership, it becomes clear that the story of BankiFi and Praetura is not just about financial transactions or business strategies. It’s about creating opportunities, fostering innovation, and building a future where SMEs can thrive, unfettered by the traditional constraints of the banking system.
