Blue Motor Finance has partnered with the Lloyds Bank Commercial Banking API Lab for the roll out of instant loan payments for traders and dealerships.
The two companies are working on a Faster Payments system and a Direct Debit API meaning loans agreed will be processed in real-time and paid to customers within minutes.
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“The instant payments system is a landmark moment for Blue Motor Finance and for the entire car finance industry,” said Charlie Barker, chief technology officer at Blue Motor Finance. “For the first time, it will mean that our customers will be able to make critical investment decisions, including at a vehicle auction, for example, with the knowledge that they’ll receive cleared funds in their account, potentially within two minutes.”
Steve Everett, managing director of payments and cash management at Lloyds Bank Commercial Banking, added: “At the Lloyds Bank Commercial Banking API Lab we’re committed to bringing the full potential of digital to the forefront of financial services.
“We’re excited to partner with Blue Motor Finance to bring this innovative instant payments service to its motor trader customers, and create real value for businesses in the car financing industry through new API-enabled solutions.”
Earlier this year, Blue Motor Finance launched a tailored stock lending product to support SME motor dealers, following a pilot launch in January 2019. The product is designed to provide dealers with a simple route to accessing stock finance. Using AI technology, the lending facility will enable dealers to finance new stock investments on their forecourt in a secure manner.
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By GlobalDataChris Jones, chief operating officer at Blue Motor Finance, said the new product launch marks a critical stage in the development of the company. “Independent dealers have historically had to deal with a complex and burdensome process to secure the finance they require to grow their stock. This had the dual effect of hindering both their ability to grow their business and reducing the choice available to end customers.”
