Automation converts time into money

By Mat White, relationship manager at iwoca

No one on the planet has enough time or resource to think through every possible outcome for all their business requirements, on their own, and then ensure a theoretically perfect solution. That’s where machines come to help.

Automation is making lending decisions for smaller clients simpler and faster. Brought to the business mainstream when General Motors first created its automation department back in 1947, the process has now firmly taken root in many aspects of life.

It’s in the thermostat controlling our boilers at home, the cruise control in our cars, and now – through the use of the IoT – in our office spaces via technology like automated printers, which can detect when they’re running low on ink and automatically order more.

But how exactly is automation affecting business finance? Well, a worker today certainly has many time-saving advantages over their counterpart of 70 years ago. Today, brokers can receive payments from a customer using a smartphone, and submit their applications to a lender the same way. Of those applications, at iwoca, our technology unpicks thousands of interpolated data points, assessing in seconds what a human eye would take hours or days to sift through and process.

The upshot of all this automated data-shifting is that lending decisions can be made automatically, equipping brokers with a firm answer quicker, in the process increasing the number of clients that can be serviced per day. Open banking will further expedite this process, allowing us to source account information directly from the customer’s bank. This means that our automated credit decisions can release finance in just a few clicks. We will also seamlessly be able to update the customer’s credit limit as their business grows.

Small businesses spend on average an incredible 120 days of a working year just on administrative tasks. So, if available and accessible automated processes can alleviate some of the laborious tasks they have to face day-to-day, then we will undoubtedly observe a large reduction in days spent doing tedious admin. Fingers crossed, there’s then an increase in a business’s productivity as a result.

Automation saves time, allowing brokers to focus on what matters: the effective self-service of smaller clients, so that they, in turn, can focus on what matters most: the growth and strategic expansion of their business.