Fintech pioneer Advanced Payment Solutions succeeds in challenging high street banks
Today Advanced Payment Solutions (APS), an established UK fintech banking services provider, reports a 78% revenue increase in its SME business in the past year, as sole-traders and microbusinesses look beyond traditional banks for their financial solutions. This was complemented by a threefold increase in its rapidly growing credit portfolio.
The company has experienced a 40% rise in acquisition of new small business clients, which has allowed it to on-board and service more than 50,000 SMEs to date via its proprietary digital platform. Meanwhile, APS has more than doubled SME related payment volume in the past year to over £500 million driven by its convenient banking and cash management solutions.
APS’ stellar results have been additionally fuelled by growth across its lending and credit business. Its algorithmic and data driven approach to both Consumer and SME lending resulted in credit receivables tripling to nearly £10 million.
Increased demand for APS’ credit product offering continues to be spurred on by pent-up demand from small business owners and consumers whose needs are not well serviced by traditional credit providers.
Due to this unmet credit demand, APS is announcing an extended credit facility deal with specialist bank Shawbrook, increasing its lending facility with them to £10 million. This expanded credit facility will be used to further support APS’ credit growth ambitions.
Kieran McSweeney, MD Wholesale Finance at Shawbrook Bank, commented on the credit facility:
In the past year we have been impressed with APS and its ability to leverage customer and credit data to continuously improve its credit algorithms to grow its credit portfolio in a rapid but responsible way. As a specialist bank, we enjoy supporting lenders like APS to achieve their growth aspirations and we are excited to be able to expand our facility to meet their rapid growth plans.
The boost in consumers and SMEs embracing APS’ uncomplicated alternatives to traditional banking products follows the company’s recently expanded link-up with the Post Office. The deal, which saw APS become the first fintech non-bank to offer a more comprehensive banking service through the Post Office network, enables customers to access banking services at over 11,500 branches across the UK. With APS’ sole trader and microbusiness customers dealing in cash, the ability to deposit and withdraw cash in real time has proven particularly popular with cash loads from SMEs increasing 125% following the launch of the upgraded Post Office service.
Alongside APS’ growth in SME clients, the company is seeing continued success with its core base of consumers, resulting in an increase of 32% in the past year. With consumers and businesses embracing the fintech wave, APS met a significant landmark this year – processing over £3 billion worth of customer transactions in total.
Rich Wagner, CEO and founder of APS, commented:
Our business has seen consistent and substantial growth since inception, but the significant growth over the last five years indicates that fintech really is continuing to accelerate rapidly across the UK and that we are delivering on our strategy to leverage our alternative banking capabilities to drive real value to consumers and SMEs.
While consumer up-take in alternative banking solutions has been on the rise, SMEs have been traditionally shy of these challenger solutions. However, as SMEs – in particular sole traders and microbusinesses – continue to be pushed out of traditional finance, these traders are now embracing alternative technology providers with open arms and realising the benefits of looking beyond the banks for their financial needs.
Notes to Editors:
APS is a leading provider of challenger banking solutions to consumers, businesses and local governments. For more than 10 years, APS has used its proprietary technology platform and analytics capabilities to develop and deliver a broad range of innovative products to its customers to help them manage their money and meet their bill payment, purchasing and borrowing needs. APS is authorised and regulated by the FCA.
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Advanced Payment Solutions Limited (APS), trading as Cashplus Bank, is registered in England and Wales at Cottons Centre, Cottons Lane, London SE1 2QG (No.04947027). APS is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Number 671140.
APS provides credit facilities subject to approval and affordability, and where accounts continue to meet APS credit criteria.