Capalona is one of the UK's fastest-growing online business finance brokers. Their free-to-use platform allows businesses to compare and apply for finance efficiently.
We’ve spoken with Capalona’s Director & Founder, Simon Moorcroft.
Clifton Private Finance is an award-winning, independent property and business finance brokerage firm. We’ve also spoken with Sam Hodgson, Digital Content Manager.
The brokerage industry's view of technology has transformed over the past five years. Gone are the days of paper document filing systems, fax machines and pagers. According to Simon Moorcroft of Capalona, ‘Technology has gone from being a nice-to-have to a must-have in brokerage’.
Of course, keeping up with the constant technological innovations in the commercial finance brokerage sector including automating back-office functions, open banking & accounting and fraud detection – may be challenging when it comes to technological integration and maintaining data security. In this article, we explore the predictions made by commercial finance brokers for where technology can take them in 2025 and beyond.
According to the United Trust Bank, nearly half of asset and property brokers work at least 12.5 hours a week more than the average UK employee. Given this, it’s unsurprising that many modern commercial finance brokerage technologies are designed to reduce the administrative workload.
‘In the commercial finance space, [AI] is largely being used for automating repetitive tasks like document analysis (trawling through huge volumes of business accounts and financial forecasts, for example),’ notes Sam Hodgson of Clifton Private Finance.
Sophisticated automation technologies – data extraction and analysis tools – can reduce the time and mental load spent copying and pasting financial data. That’s assuming these tools are simple to use and easy to fit into the current workflow.
Onboarding new technology may deter brokers otherwise interested in its potential. Simon Moorcroft of Capalona elaborates: ‘Adopting new technologies can be tricky, as it involves keeping data secure, staying on top of compliance, and making sure everything works well with your current systems’.
However, by partnering with client-centric fintechs, commercial finance brokers can discover user-friendly technological solutions with the required security qualifications (such as ISO27001, SOC2, etc.). The best financial data solutions will offer multiple integration options, such as API, secure file transfer or low-code automation solutions.
When it comes to the types of technology we might see more of beyond automation, possibilities include:
With nearly half of all fraud attempts in financial services driven by AI, it seems fair to use technology to fight back.
Brokers play a crucial role in preventing fraud, which can be enhanced with advanced fraud detection tools designed to safeguard client data. AI is a particularly helpful technology, as it can analyse images and data in real-time to calculate risk scores, verify identities and flag anomalies. Brokers are increasingly trailing and implementing fraud security measures to gain greater control over their financial data.
Clifton Private Finance explains their use case: ‘We’ve [...] embraced tools like facial recognition to streamline processes and carry out extra checks beyond our existing frameworks’.
Open Banking allows clients to manage their money through banking apps. Clients can share their financial information securely and electronically with their financial institution.
In contrast, Open Accounting allows a business to make its accounting information available to its desired financial institution. Examples of this information include:
What role do Open Banking and Open Accounting play in commercial finance brokerage? The right Open Banking and Open Accounting solutions can [offer] ‘faster, more personalised services while building trust and transparency with clients’, according to Capalona.
Capalona also notes that these tools can enable brokers to gain a ‘competitive edge’ as ‘Digital solutions like Open Banking and Open Accounting transform client onboarding and make decision-making smarter and more efficient. Capalona recently adopted Open Banking, boosting loan matching accuracy and delivering more tailored funding options for clients. Additionally, clients can securely share their financial data with selected lenders, eliminating the need for PDFs (and) speeding up the application process’.
In other words, Open Banking and Open Accounting could offer a convenient and secure way of transferring and handling financial data. Brokers can reduce their manual workload, while personalised services can increase client satisfaction. For clients, the convenience and transparency of open banking and accounting mean they can manage their finances quickly and securely.
It seems fair to be cautiously optimistic about the landscape of commercial finance brokerage technology in terms of quality and adoption.
Simon Moorcroft of Capalona ‘Believe[s that] 2025 could see increased adoption of AI, with brokers using technology to offer smarter, more personalised services. As clients expect more tech-driven, efficient solutions, there will be a growing demand for services that put their needs first, enhancing transparency and their overall experience’.
Despite the efficiency gains caused by technology, maintaining client relationships is a delicate process that machines (alone) cannot fulfil. With clients demanding increasingly complex projects, it’s essential that brokers not lean too heavily on technology. Sam Hodgson of Clifton phrases it as ‘The balance of tech and empathy that builds lasting client relationships and leads to the best client outcomes’.
As a fundamentally client-facing job, no broker is in danger of being ‘automated away’. Yet, commercial finance brokers who aren’t digging deep into technology (and, in particular, AI’s) potential are in severe danger of getting left behind.
Leading commercial finance brokers have implemented commercial finance brokerage technology to complement their brokers' existing skills. Whether automating administrative tasks or ushering in new open systems, brokers (stand to) benefit from experimenting with the ever-growing market of brokerage technology solutions available.
We look forward to seeing how technology enables commercial finance brokerage to become more efficient, client-facing and profitable in 2025.
