Project Overview
A UK alternative finance company providing trade finance (invoice discounting, supply chain finance, and lette...
Technology Stack
Compliance & Standards
The Challenge
A UK alternative finance company providing trade finance (invoice discounting, supply chain finance, and letters of credit) to UK SME exporters needed to build a digital platform. Paper-based processes caused 8–12 day approval timelines. FCA COBS and Consumer Credit Act obligations, UK Export Finance (UKEF) scheme integration for government-backed facilities, AML/KYC for international trade counterparties, Companies House and HMRC VAT verification were the compliance requirements. Budget: £120,000.
Our Approach
Digital Application and Document Upload
- Next.js application portal: SME applicant submits application with document upload (invoices, purchase orders, export documentation).
- OCR document parsing (AWS Textract): automatic extraction of invoice values, counterparty details, payment terms.
Document fraud detection
invoice metadata analysis and duplicate detection.
Companies House API
applicant company verification, director identity (cross-referenced with KYC), PSC (Persons with Significant Control) for AML beneficial ownership.
HMRC VAT API
VAT registration verification, VAT return history (proxy for business revenue and trading activity).
HMRC Making Tax Digital
voluntary MTD VAT data as creditworthiness signal for SME applicants.
UK Export Finance
- Digital Guarantee scheme integration for UKEF-backed trade finance guarantees.
- UKEF API for scheme eligibility check (UK-registered exporter, eligible destination country, UKEF credit appetite check).
- UKEF-backed facilities: lower interest rate passed to SME exporter — competitive advantage vs non-UKEF trade finance.
International trade counterparty screening
- OFSI UK sanctions list, HM Treasury UK financial sanctions, OFAC (US sanctions — relevant for USD transactions), and Dow Jones World-Check for PEP/adverse media screening of foreign counterparties.
- Trade-based money laundering (TBML) indicators: invoice value vs market price deviation, unusual trade routes, counterparty in FATF non-compliant jurisdictions.
The Results
Platform live at 16 weeks, £114,000 — under budget.
Approval timeline: 8–12 days → 2.1 days average.
UKEF scheme adoption: 34% of facilities now UKEF-backed (was 8% — digital eligibility check surfaced applicable cases).
AML: 3 TBML indicator cases escalated to MLRO in first 3 months (previously zero identified).
Companies House verification: 100% automated (was 100% manual).
Consumer Credit Act compliance audit: zero findings.
“UKEF adoption going from 8% to 34% changed our product economics entirely — UKEF-backed facilities are cheaper to fund and we can offer better rates. The TBML detection caught three cases that would have gone straight to approval. The 2.1-day approval timeline versus 8–12 days has fundamentally changed our competitive position." — CEO, UK Trade Finance Company (name withheld)”
Project Details
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