Lloyds Bank has collaborated with Blue Motor Finance on a new API to deliver instant payments to individual motor traders and dealerships.
Blue Motor Finance, Europe’s fastest growing company, was founded in 1992 but has since pivoted to FinTech.
It has since taked the top spot on the 2017 Financial Times 1000 list, after it reported a revenue growth of 51,000 per cent and a revenue of €61m.
It will now collaborate with the bank to create the ‘Faster Payments and Direct Debit API’ technology.
The two companies have a longstanding relationship and plan to build on this further, to bring instant payments to the car finance market for the first time.
Through the partnership, loans agreed between Blue Motor Finance and Lloyds Bank will be processed in real-time, meaning that its customers can receive funds within just a few minutes.
“The instant payments system is a landmark moment for Blue Motor Finance and for the entire car finance industry,” said Blue Motor Finance CTO, Charlie Barker.
“For the first time, it will mean that our customers will be able to make critical investment decisions, including at a vehicle auction, for example, with the knowledge that they’ll receive cleared funds in their account, potentially within two minutes.
“Lloyds has been a fantastic partner and we’re looking forward to bringing this product to the market.
Steve Everett, MD, Payments and Cash Management, Lloyds Bank Commercial Banking added: “At the Lloyds Bank Commercial Banking API Lab we’re committed to bringing the full potential of digital to the forefront of financial services.
“We’re excited to partner with Blue Motor Finance to bring this innovative instant payments service to its motor trader customers, and create real value for businesses in the car financing industry through new API-enabled solutions.