In an effort to push back against tech giants and new digital competitors, Santander and eBay have announced a new small business lending partnership. The Spanish bank will start offering loans to more than 200,000 small and medium-sized businesses selling goods on eBay in the UK through its Astro fintech app. Santander will even have access to eBay sales and cash flow data to help identify potential customers and strengthen the way it decides which companies will receive loans. Astro CEO Sigga Sigurdardóttir explained how the association will help SMEs access loans faster than through traditional channels: "By working with eBay, Asto will give small business owners secure access to funds in minutes from your phone, compared to several weeks.
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Astro is just one of many start-ups Santander is currently developing as part of its €20 billion technology investment plan aimed at fighting challengers and big tech companies trying to interfere in the bank business. The digital independent bank OpenBank, launched in Spain, is another notable initiative that is part of the company's strategic plan. It is currently being developed in Germany and plans to roll out in the Netherlands and Portugal later this year. For eBay, its partnership with Santander will help the auction site strengthen its bids from suppliers, which will try to catch up with Amazon while battling rivals like Etsy. Amazon currently offers loans to businesses that sell on its site. Square and PayPal are also entering the market along with specialty companies like OnDeck and Funding Circle. EBay's COO Paolo Levoni explained how their partnership with Santander will help small UK businesses, stating: "Our partnership with Asto is designed to help our professional sellers efficiently access cash loans for helping them grow and manage their cash flow, our latest step in helping UK small businesses thrive.via Financial Times