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How does HSBC’s partnership with an alternative lender affect borrowers?

Estimated Read Time: 2 Minutes

JESSICA LAMBERT , 27 January, 2023

Earlier this year, HSBC  partnered with an alternative funding provider and Chirag Shah, CEO at Nucleus believes that this is a strategy that makes a lot of sense for the parties involved.  In this article, Chirag shares his thoughts on this and how he believes this will impact borrowers.

Chirag Shah, says “We are likely to see a lot more of these partnerships formed over the next few years”. The collaboration between banks and these alternative, technology led lenders means that each can bring their strengths to the table and enhance their offering.

Whilst banks traditionally have better back-end processes and customer relationship management once the lending has been approved, as well as their years of experience and expertise, the alternative lenders are equipped with more sophisticated technological tools and processes to provide the necessary data to make lending decisions much more quickly. Their partnership, therefore, brings together these two core elements of funding which will benefit the businesses using their services.

Chirag continues, “Technology cannot replace the core requirement of a relationship, which banks have the infrastructure to excel at”.

Nucleus on the other hand, has been set up to offer the best of both worlds, with a traditional lending background for stability, allowing us to remain independent, having already established processes to maintain relationships with clients whilst having the agility to provide quick, technologically led lending solutions.

How technology and human interaction work together?

Without the technological infrastructure of alternative lenders, banks risk being left behind. The amount of time and resources required for banks to implement this on their own could lead to them “missing out on the next growth phase”. In context to this partnership, Chirag states: “It gives the banks a foothold straight into the alternative space ”.

How will businesses benefit?

Any financial body that has a strong front end with advanced digital tools and a back end with strong customer relationship management, robust risk processes and expertise in business finance is better equipped to not only lend money to businesses more quickly but conduct all the due diligence necessary to make an informed decision.

Chirag had the following to say about a potential Nucleus partnership: “Nucleus is not looking for any bank partnership. We are set up with the right processes at the back-end to recover money, to create relationships with businesses, which we have built over the past 5-7 years. Also, we have added technology at the front end over the past 18 months to deal with processes and deliver to businesses much faster. What Nucleus brings to the table is the agility and speed that alternative lenders offer, but with the stability and product-led relationship management that banks offer.”

Nucleus is a lending specialist with a difference: it offers the same facilities as a bank, has the financial expertise to rival a bank, but is flexible and transparent like alternative lender.

Our products and services come with guaranteed expertise, honesty and certainty. If you are experiencing cash flow challenges or want to realise your business growth plans, take a look at our range of funding solutions and apply now to get started!

View the original article here: https://business-reporter.co.uk/2017/08/29/exploring-alternative-business-finance-issues-nucleus-commercial-finance/





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