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Bloomberg
Bank of Nova Scotia, Canada’s third-largest lender by assets, is collaborating with financial technology firm Kabbage Inc to offer loans online to small businesses.
The program will be available in Canada starting next month and in Mexico later this year, Atlanta-based Kabbage said that didn’t include terms. Business customers can apply for loans through Scotiabank’s website in the two countries and get a decision within seven minutes, according to the statement.
Kabbage is among startups encroaching into financial services and attracting attention from large banks. In November, fintech firm Thinking Capital and Canadian Imperial Bank of Commerce announced a referral partnership to offer small business loans of as much as C$300,000 (US$234,000) through the internet.
Scotiabank, with operations in more than 55 countries, joins Spain’s Banco Santander SA and Holland’s ING Groep NV in adopting Kabbage’s platform for some customers.
Toronto-based Scotiabank invested in Kabbage as part of a US$135 million equity raise that also included ING and Santander InnoVentures. Kabbage said it extended US$2 billion in credit to small businesses in the past 5 years.