Microsoft to partner with Finastra for SMB loans

US fintech firm Finastra has announced a collaboration with Microsoft to help small and medium-sized businesses (SMBs) access loans.

The SMBs will be able to unlock these new financing options through their Dynamics 365 accounts, which will also be used by the lender for review.

Microsoft suggests that SMBs operate in "a sector severely underserved when it comes to accessing finance" and its partnership with Finestra aims to improve access in a "seamless and frictionless" manner. Dynamics 365 is a key part of the plans, as SMBs will be able to use information already stored in their accounts to apply for loans. This includes accounts receivable and payable records, which could speed up the time between lending decisions and payment, according to Microsoft.

"We are proud to further expand our relationship with Finastra to drive new value for small and medium enterprises, the backbone of job creation in the world's economy," said Bill Borden, corporate vice president of worldwide financial services at Microsoft. "By embedding secure access to key financial services in the context of Microsoft Dynamics 365, our SMB customers will have a faster path to the financing options and critical capital they need to thrive."

Finastra is an American-based fintech firm that has more than 8,000 financial institutions in its network and it operates in 130 countries around the world. The collaboration with Microsoft will launch in the summer, "initially" in North America, and will be integrated with open APIs through the company's FusionFabric.cloud platform.

The new lending proposition on Microsoft Dynamics 365 "reinforces" Finastra's leadership in open and embedded finance, according to the company's chief revenue officer for banking as a service, Angus Ross. What's more, Ross believes It demonstrates the benefits that embedded and contextual finance can bring to the industry and the communities within it.