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Cloud banking: How non bank lenders disrupt business finance

Fintechs and non bank lenders pride themselves on offering a faster turnaround for business loan applications. But how do they actually do it so quickly? How can they assess business loan applications within just a few hours and transfer the funds on the same business day? Well, the answer lies in technology. 

Essentially, non bank lenders and fintechs disrupt the traditional lending process by using technology to simplify the application and assessment process. How do they do it? By automating part of the process thanks to different technological developments. These include the integration of Artificial Intelligence (AI) and cloud banking platforms that can help to make smarter and faster lending decisions. 

Still finding it hard to get your head around? We get it, the world of fintech is extremely complex. But in order to choose the right lender for your business, it’s important to understand how a non bank lender like Lumi operates in the background. 

Technology has always been the backbone of our business. We are proud to partner with some of the leading tech partners in that space. This allows us to offer our customers the best possible lending experience. One of these partners is the cloud banking and financial services platform Mambu

So, how does cloud banking work? And why is it a game changer for the lending process? We interviewed Mambu’s Managing Director APAC, Myles Betrand, on that exact topic. 

What is cloud banking put simply?

Cloud banking, in the simplest of terms, refers to banks using the cloud to store and access customer data. Traditionally, banks have stored all of their customer data in monolithic, on-premises, legacy tech stacks, which are slow, expensive and labour-intensive to update and improve. With cloud banking, banks and financial service providers can make changes to products and services almost instantly, with minimal down time and next to no disruption to customers.

While traditional banking technology might be likened to a big cruise ship. Big and heavy, and difficult to manoeuvre. Cloud banking is much more agile and flexible. More like a speedboat.

How is cloud banking technology revolutionising the banking and financial services industry?

Cloud banking technology has already made transformative changes to the banking and financial services industry around the world. One of the key changes we’ve seen is the switch to an ‘ecosystem’ focus. Where multiple fintechs work in harmony with financial institutions to develop new products and services. Rather than the siloed, heavily competitive approach of traditional banks.

Cloud banking technology has many benefits over traditional legacy systems. With the most notable being greater speed and agility, lower running costs and superior customer experiences. Neobanks, forward-thinking non bank lenders like Lumi, and other digitally-focused financial service providers have all leveraged the benefits of that technology to make waves in the industry. And we’re now seeing a lot more attention placed on cloud from the more traditional banking sector.

Besides the benefits of speed, agility and cost-savings, cloud – despite the belief of many traditionalists – also offers greater security. With cloud providers like AWS, Google Cloud and Microsoft investing many billions of dollars on security of their cloud platforms. While security was initially seen as one of cloud’s weaknesses, nowadays it is recognised as a strength.

What’s the key benefit for the borrower who chooses a non bank lender using a cloud banking platform?

For borrowers choosing a lender who uses a cloud-based lending platform like Lumi’s, the main benefit is always going to be speed. And they’ll also see a significant reduction in the cost of processing and maintaining their loan. Cloud financial services platforms like Mambu’s are API-driven, and designed to connect with a range of technologies, including Artificial Intelligence (AI) and data analytics, to automate processes and make the whole experience faster, cheaper and overall less painful. Customers can also feel secure that their data is safe in the cloud, and isn’t at the mercy of an individual bank’s security measures.

In terms of the customer experience, it is cloud’s ability to enable hyper-personalisation that will be the biggest benefit for borrowers.

What’s the future of cloud banking and its impact on banking?

I think what we’ll continue to see in the very near future is more and more banks and financial institutions realise that they simply can’t compete with the new digital financial services without replacing their old legacy technology and taking a leap into the cloud. So we’ll see established banks and lenders begin to offer more and more digital products and services. Perhaps even launching their own digital bank offshoots – and gradually move away from that traditional, bricks and mortar banking approach. This, in turn, will increase competition in the space, resulting in greater cost savings and better opportunities for consumers.

Globally, cloud banking has been the great equaliser in many regions, enabling better access to financial services to consumers who were previously excluded, and reducing the cost of banking overall. We’re a few years behind markets like Europe and the UK in this space, so we know what to expect by looking at what’s happened there.

What are some key trends you see emerging for Australia’s fintech market?

Australia’s fintech scene is thriving right now. In fact we were recently ranked 6th in the world in terms of fintech activity and innovation in the Global Fintech Rankings for 2021. That means we’re competing on the same level as countries like the UK and USA, with some of our Australian tech innovations making serious waves around the world.

The key trend in the Australian fintech market, and globally, is the ecosystem approach mentioned earlier. This sees best-for-purpose fintechs working together collaboratively to achieve a goal, rather than competing against each other. It’s an enormous shift in thinking for many in the financial services industry. But the successes speak for themselves. At Mambu, we thrive on these mutually beneficial collaborations, and love working with other high-performing fintechs to deliver for our customers.

For us, we see an incredibly exciting future for the Australian fintech market, and we’re thrilled to be a part of it.


We hope that this overview of cloud banking technology and its benefits can help you better understand how some of the non bank lenders like Lumi operate. Thanks to our partnership with Mambu, we can offer our small business customers one of the fastest lending experiences in the market. 

So, what do you need to apply for small business funding with Lumi? Our online business loan application process is simple and will only take a few minutes to complete. 

All you need to start with are 3 things:

  • A valid ABN/ACN

  • Business operating for at least 6 month

  • Min. monthly turnover of $5K

Don’t hesitate to get in touch with our team at support@lumi.com.au or give us a call on 1300 00 5864. We’re happy to help you find the right finance solution for your business.

Your Lumi team

Post Author: Vanessa Muller

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