Previse appointed to FinTech Strategy Group

The UK, and in particular London, is one of the best places in the world to grow a financial technology company. But it can’t rest on its laurels. Challenges are growing from the likes of Singapore and New York, while lower cost Eastern European countries have impressive numbers of skilled developers.

That’s why we are very pleased to see Previse’s co-founder, Paul Christensen, appointed to the new Fintech Strategy Group (FSG), set up by Innovate Finance and the City of London Corporation.

The group fosters open and collaborative dialogue on the future of UK fintech and works to maintain the UK’s competitive fintech advantage while driving innovation in financial services.

By bringing together representatives from government, the UK’s largest financial institutions and the top emerging fintech companies, like Previse, it provides an industry-led, independent platform for government and regulators to engage with senior representatives from across the industry.

The Group is chaired by Iain Anderson, Executive Chairman of Cicero Group. The Vice-Chairs are Catherine McGuinness, Chair of Policy Resources at City of London Corporation and Ron Kalifa, Executive Director of Worldpay.

“We must continue to challenge ourselves to support and evolve the UK fintech industry.” Said Charlotte Crosswell, CEO of Innovate Finance, commenting on the group earlier this year.

“We look forward to drawing on our wide membership base to work on issues and provide industry-led solutions while simultaneously identifying areas for policy recommendations.”

Previse has made great strides in solving the problem of slow business to business payments using its artificial intelligence technology and is currently engaged with a number of the UK’s largest organisations.

“The UK is the best place in the world to run a financial technology company. It has a unique combination of finance and machine learning expertise along with a concentration of corporate headquarters. That’s why Previse, like so many fintech companies, selected the UK as our headquarters.” Said Christensen.

“The sector is already booming, but it is still early days and there is still huge untapped potential in UK fintech. I am excited to be involved with this important group and helping play our part in ensuring that the UK continues to lead the way in financial technology for years to come.”

Previse secures backing to end late B2B payments with the help of AI

Small businesses are the backbone of the UK economy, generating some 50% of private sector turnover and employing three out of five private sector workers.

However, these businesses are held back by late payments from their large corporate clients. With 60% of SMEs paid late by corporates, businesses are left strapped for cash to meet their own payment obligations, such as wages, stock and rent. This cash flow crisis forces 50,000 UK companies a year to go to the wall. 

Banks play a role in easing the problem, offering larger suppliers short-term financing or buying the invoices directly from suppliers for a substantial discount, a practice known as factoring. Both these solutions are expensive for the supplier, however, which pushes up prices for the whole payments chain. In addition, given the fragmented and high-risk nature of the SME credit market, only the largest suppliers are able to secure credit.

This means that, according to the world bank, there is $2.4 trillion in unmet demand for financing from SMEs globally.

Enter Previse. The company, which this week announced the successful completion of a £2 million seed round, is harnessing the power of artificial intelligence (AI) technology to allow banks to meet the financing needs of SME suppliers in a scalable and low-risk way.

Previse uses advanced AI and hundreds of millions of data points to score the likelihood that a corporate buyer will be able to pay a supplier’s invoice. This score is then provided to banks and other funders who use that information to instantly pay the SME on behalf of the large corporate. The supplier receives their money the day they issue their invoice, giving them complete cash flow confidence.

The effect is that “instant, frictionless and efficient payments become the new standard for B2B payments,” according to Paul Christensen, co-founder and CEO of Previse.

The rest of the payments chain benefits as well. By offering such a service, buyers can negotiate a discount on their purchasing costs and banks can reach much deeper into the SME credit market without blowing their risk exposure. The net effect could be a several billion-pound boost to the UK economy every year.

To find out more about Previse seed funding please click here