Latest news with #SMELending
Yahoo
23-05-2025
- Business
- Yahoo
Paragon Bank raises automated lending threshold for SMEs
Paragon Bank has raised the automatic decision-making threshold for SME lending from £100,000 to £150,000, in a move the lender describes as 'reflecting ongoing investment in technology' and a deepening focus on faster credit delivery. According to a press release, the change means a greater proportion of loan applications will be eligible for quicker automated approvals, provided they relate to hard assets under hire purchase or finance lease agreements and are valued at £150,000 or less. The increase is part of Paragon's broader digitisation strategy, aimed at enhancing efficiency through automation, artificial intelligence and data analytics, the press release said. The bank said the shift would 'support more SMEs, more quickly', while continuing to uphold 'robust credit controls'. According to John Phillipou, Managing Director of SME Lending, the update is underpinned by improvements to the bank's digital portal and data-driven credit tools. He said the learnings from automated decisions are also being used to 'refine our system over time', improving both speed and accuracy across the board. Paragon's decision comes amid changing dynamics in the UK's SME finance market. In 2024, challenger and specialist banks accounted for 60% of gross lending to small businesses, according to the British Business Bank – the highest level recorded to date. The data points to a broader retreat by traditional banks from SME lending and a growing role for non-traditional lenders. Paragon said its digital transformation programme is also aimed at enhancing back-office resilience and securing the long-term sustainability of SME finance delivery. "Paragon Bank raises automated lending threshold for SMEs" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
29-04-2025
- Business
- Associated Press
PAObank Announces FY2024 Annual Results Achieves Record-Breaking Performance Amplifies Resources to Expand Retail Banking Services
Loan Assets Reach a Record High of HK$3.13 billion Customer Deposits Have Significant Growth of 74% Net Interest Income Surged 70% to over HK$130 million HONG KONG SAR - Media OutReach Newswire - 29 April 2025 - PAO Bank Limited ('PAObank'), announced its annual results for the year ended 31 December 2024. As Hong Kong navigates a period of economic transformation, SMEs are confronted with significant funding needs to facilitate their upgrades and transitions. PAObank, as the first digital bank dedicated to SMEs in Hong Kong, has remained a steadfast presence to its clients. In 2024, PAObank achieved substantial business growth, reflected in its sustained improvements in core profitability. Net interest income for the year surged by 70% year-on-year to over HK$130 million, with a net interest margin increased to 3.17%. Leveraging our forward-looking market strategies and solid business management, key operational indicators of PAObank in 2024 have shown significant growth. During the year, total loans and advances to customers increased by 49% year-on-year, surpassing HK$3.13 billion. Total customer deposits for the year rose by 74% to HK$4.35 billion, with loan-to-deposit ratio remaining at a stable level of 72%. In April 2024, PAObank officially became a subsidiary of Lufax Holding Limited ('Lufax') ( NYSE LU), embarking on the next phase of its business direction and strategy. PAObank is now focusing on expanding retail banking services while channelling more resources into product development and technology advancement. Meanwhile, the Bank passes cost savings on to individual customers in the form of attractive deposit interest rates. The related investments are reflected in the FY24 annual results. Despite increased credit loss among SME customers due to economic instability last year, PAObank remains committed to its mission of supporting SMEs. The Bank has introduced more loan products to alleviate financial burdens of SMEs. Following the launch of the 'Business Secured Loans' in the fourth quarter of 2024, which offers instalment loans and revolving loans for SMEs to facilitate their business growth and transformation, PAObank introduced 'Cross-border e-Commerce Revolving Loan' in early 2025. This product targets the rapidly growing e-commerce market and supports SMEs in expanding their e-commerce business presence. Besides, PAObank proactively participated in the Government's SME support measures and The Taskforce on SME Lending, contributing to broader efforts that support SMEs. PAObank is proactively addressing SME financing needs, our robust risk management system manages to maintain assets quality at healthy level. As of 31 December 2024, about 25%[1] of SMEs borrowing from PAObank have not obtained bank loans before, and about 8.2%[2] of start-ups operating for less than 3 years received unsecured loan, reflecting that PAObank is assisting SMEs in unlocking their full potential. In addition, PAObank is proactively expanding its retail banking services and investing resources in products enhancement and development. In March 2025, PAObank obtained an Insurance Agency Licence and officially ventured into the insurance sector. PAObank has established strategic partnership with China Ping An Insurance (Hong Kong) Company Limited and FWD Hong Kong to provide general and life insurance respectively. By utilising cutting-edge fintech and Application Programming Interface (API) technology, PAObank integrates with the platform of insurance companies to offer seamless online bancassurance experience. PAObank will continue to broaden its range of financial services for individual customers this year by introducing more offerings beyond time deposits and insurance, and providing attractive deposit interest rates to reward customers, thereby fully advancing its retail banking business. Looking ahead, leveraging its leading fintech advantages, PAObank is dedicated to providing more comprehensive and personalised financial solutions to both SMEs and individual customers. Amid global market volatility, PAObank will continue to closely monitor the portfolio's credit performance and maintain robust credit quality. Staying true to the original mission of promoting financial inclusion, PAObank remains committed in delivering innovative solutions to address the service gaps in banking sectors and thus promotes the development of financial inclusion both locally and across the Greater Bay Area. For the full report of PAObank's 2024 financial statements, please visit [1] As of 31 December 2024, about 25% of SMEs borrowing from PAObank have not obtained bank loans before amongst the approved loan cases of PAObank. [2] As of 31 December 2024, about 8.2% of SMEs were start-ups operating for less than 3 years amongst the approved loan cases of PAObank. Hashtag: #PAObank The issuer is solely responsible for the content of this announcement. PAO Bank Limited PAO Bank Limited ('PAObank'), a wholly-owned subsidiary of Lufax Holding Ltd ('Lufax') (SEHK: 6623; NYSE: LU) and a member of Ping An Insurance (Group) Company of China, Ltd. ('Ping An') (SEHK: 2318; SSE: 601318), is committed to fostering financial inclusion and establishing a digital banking ecosystem by leveraging its extensive experience in SME banking services and its leading financial technology advantages. PAObank was granted a banking licence by the Hong Kong Monetary Authority in May 2019 to offer banking services via virtual channels. PAObank is expanding diverse business segments including retail banking and SME banking.
Yahoo
27-03-2025
- Business
- Yahoo
Paragon Bank's SME Lending arm reduces deal processing times by 60%
Paragon Bank's SME Lending division has achieved a reduction in its deal processing times, cutting the average application processing time by 60% in 2024. This improvement is attributed to advancements in the division's technological and operational capabilities, leading to an increase in its conversion rate. The reduction in processing time, from application receipt to approval, is primarily due to the expansion of the division's automated decision engine. This system allows for certain applications to be auto-approved and provides an 'assisted underwriting' outcome on every application, the company explained. The recent expansion of the division's credit and risk team has also contributed to quicker decision-making. This enhancement enables the sales and underwriting team to dedicate more time to complex deals, further improving efficiency. According to Paragon, the accelerated processing has led to 'record' conversion rates for the company, with the division achieving a 12% annual growth in 2024. SME Lending remains a key growth area for Paragon, with the division reporting over £480m ($620.89m) in lending last year, marking a 7.3% increase from the year before. Paragon SME Lending managing director John Phillipou said: 'We are delighted that the continued development of our technological capabilities, and the expansion of our Credit and Risk team is enabling us to deliver a significantly improved level of service for our Broker and Vendor partners, as well as our customers. 'We have some really exciting plans for the SME Lending division at Paragon over the coming years, and with the project to deliver our new back-office system now underway, we aim to continue to improve the service we are able to offer and help more SME businesses than ever before.' In a recent development, Paragon Bank's SME Lending division provided TSL Contractors, a Scottish building, civil engineering, construction, and aviation company, with a £2m funding facility. This funding supports TSL's expanded workload and includes an Airbus helicopter acquisition. The deal was led by Alison Jones, head of aviation in the specialist lending team, under the leadership of Matt Bass, for Paragon's SME Lending division. "Paragon Bank's SME Lending arm reduces deal processing times by 60%" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
