Swedish fintech Krea makes SME loans more accessible and affordable thanks to Klarna Kosma.
London, 25 October, 2022 - Klarna Kosma, Klarna's financial technology platform for banks, fintechs and innovative retailers, today announced that its partnership with Krea, a digital loans platform for Small and Medium-sized businesses (SMEs) in Sweden has helped Swedish SMEs receive on average 15% larger loan offers, at a 4% lower interest rate.
Krea offers SMEs a single portal where they can apply for business loans from the largest network of lenders in Sweden. SMEs enter the details of their business and loan request into the Krea platform, which shares them with over 30 banks and lenders who return their best loan offers based on the data provided in the application.
Using Klarna Kosma SMEs can quickly and securely provide transaction-level data directly from their business bank account to the Krea platform. This detailed data on the day-to-day operations of the business provides lenders with the confidence to offer larger loans at lower interest rates. SMEs who provide their bank account data via Klarna Kosma are offered on average 15% larger loans at a 4% lower interest rate. This has contributed to Krea facilitating more small business loan approvals, with more than 20,000 loan offers being submitted to SMEs this year.
Wilko Klaassen, VP for Open Banking at Klarna Kosma said: “This is a fantastic example of open banking delivering real benefits to small and medium-sized businesses, which are the driving force of growth in many economies. By facilitating greater access to high quality data, Klarna Kosma enables innovative fintechs to provide access to more funding on better terms.”
Carsten Leth, Chief Commercial Officer at Krea said: “Following the Covid pandemic, it has become even more important for lenders to assess companies based on their most recent cash flows. Kosma’s Open Banking solution enables us to help more small businesses get access to finance at better rates.”
About Klarna Kosma
Klarna Kosma is a sub-brand and business unit of Klarna to harness the rapid growth of its world-leading Open Banking platform. By providing simple access to more banks than any other Open Banking provider, Kosma rapidly reduces the time for new fintech services to reach global scale and provides the essential building blocks for innovation in financial services. Kosma provides financial institutions, fintechs and merchants with the essential connectivity to build the next generation of fintech apps and services by providing simple and secure access to 15,000 banks in 27 countries around the world through a single API. The new business unit will harness the massive growth Klarna has seen in this area, having more than doubled the number of connected banks in the past year. Today, Kosma processes close to a billion information requests to bank accounts each year.
Krea is a specialized marketplace for SME business financing. Krea was founded in Sweden with the vision to help small- and medium sized companies by offering seamless access to loan financing with the best possible terms. Krea has developed a digital platform that enables companies to create a digital application, receive offers from multiple lenders, easily compare terms and choose the best offer. An important part of the application process (and customer experience) is that Krea seamlessly collects relevant information about the company. The collected information helps lenders in their assessment of the credit risk of each loan offer.
Krea’s platform has the largest network of lenders connected which leads to more loan offers and better loan terms for companies. Krea is a free service for companies and a loan application is not binding.
For lenders, Krea is an important digital channel for sales leads with structured data. Lenders have the option to connect to Krea via APIs or alternatively place bids manually on Krea’s interface for lenders. Partnering with Krea is a cost-effective and low-risk opportunity for lenders to grow their business.