Crowdz Partners with GoCardless to Bring Open Banking to Small Business Finance

  • SME finance platform Crowdz has teamed up with London-based GoCardless.
  • The partnership will allow Crowdz to leverage open banking to improve its ability to provide small businesses with working capital.
  • Based in Campbell, CA, and founded in 2015, Crowdz made its Finovate debut at FinovateEurope 2020 in Berlin.

Small Business Funding Platform Crowdz has partnered with direct banking payments company GoCardless. This collaboration will allow the California-based fintech, which debuted Finovate at FinovateEurope in Berlin in 2020, to leverage open banking to provide better financing options for SMEs.

“We’re proud to have provided over $80 million in working capital to SMBs, but that’s just the beginning,” said Payson E. Johnston, CEO and co-founder of Crowdz. “With our global expansion plans and our goal of providing 25,000 SMBs with over $1 billion in working capital by the end of 2023, we needed a partner who could deliver the coverage, the appropriate technology and expertise. This is where GoCardless comes in.

Partnership will bring three of GoCardless’ payment features to Crowdz Avalon Market to improve both its payment and risk modeling capability. These features are Instant bank paymentwhich enables instant and one-time payments directly from bank accounts; Verified mandates, which offer better protection against fraud; and GoCardless’ To pay for integration, which supports instant payments and account verification. Instant Bank Pay and Verified Mandates will be available in the UK, US and Europe. GoCardless PayTo integration will be available in Australia.

“We’re thrilled to see our open banking capabilities powering a true disruptor like Crowdz,” said Duncan Barrigan, Chief Product Officer and Chief Growth Officer of GoCardless. “Through our global banking payment network, we will be able to accelerate their time to market and offer state-of-the-art payment solutions, making it easier for SMEs to access working capital anywhere in the world.”

Crowdz debuted Finovate in Berlin at FinovateEurope 2020. At the conference, the company showcased its end-to-end invoicing solution that helps turn unpaid receivables into cash. Crowdz’s technology leverages blockchain to provide an invoice platform for sellers, buyers, and lenders, a global receivables marketplace that gives small businesses access to alternative financing that accelerates their cash flow. Crowdz uses a proprietary risk-scoring model, the SurF Score, which it claims helps provide fairer financing compared to financing based on traditional credit scores.

By March, Crowdz had funded $50 million in receivables. The company started the year in partnership with Angels Den to launch the organisation’s funding program which helps small businesses in the UK secure their working capital. Crowdz also partnered with Meta (formerly known as Facebook) last fall to help the company launch its SME funding program.

Crowdz has raised over $25 million in funding from investors including Citi, Barclays Corporate Banking, Bold Capital Partners, Global Cleantech Capital and EG Funds Management.

Photo by India Owens