NAB joins with Xero to speed up business loan approvals
National Australia Bank and cloud accounting software firm Xero have linked their technology platforms to allow Xero clients to receive faster approvals for business loans once they allow NAB to tap their live, balance-sheet data.
As online business lenders such as Spotcap, Prospa, OnDeck, Kikka, Moula and ThinCats threaten to win over small-business customers by offering risk-based pricing and quicker credit, NAB’s deal with Xero illustrates how the big banks are using technology to become more nimble.
NAB and Xero customers are now able to file online loan inquiries to NAB straight from their Xero accounting package, after a secure connection between NAB internet banking and Xero’s accounting dashboard was established this month. It allows small businesses to instantly connect their loans, offset accounts and credit cards between the two organisations.
“Clearly, the richness of data in Xero that the customer is able to authorise the bank to access means a more complete picture of the customer’s financial health can be achieved, and this will tend to speed up any loan approval process,” Xero Australia managing direct Chris Ridd told Fairfax Media.
Many small-business bank customers find it difficult to compile the information required by banks to get loans, Mr Ridd said.
“For the first time, small businesses can submit published reports, such as P&L and aged debtors, direct from their accounting software to the bank, so NAB can make a faster loan decision. This means less time chasing reports, compiling them, and ensuring they make it to the right person at the bank.”