Alejandro Gonzalez
1 min read
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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.
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