Lloyds Banking Group has decided to terminate its commercial agreement with UK-based invoice financing fintech Satago . Lloyds originally announced the partnership in March 2022, and the agreement involved Lloyds using Satago's technology to facilitate cash management for its UK business customers by accessing cash against invoices.

As part of the initial agreement, Lloyds had invested GBP 5 million in Satago, acquiring a 20% equity stake in the company. However, according to a statement from TruFin cited by FintechFutures, Lloyds has chosen to terminate the agreement following an internal review, opting not to prioritise the Satago platform. According to the same source, TruFin emphasised that Satago will continue to support its existing business customers using the platform as required.

It's also worth noting that the termination of the agreement by Lloyds was not accompanied by specific reasons disclosed by the bank. Other developments from Satago In April 2024, Satago entered a collaboration with mmob, an API adaptor, aiming to enable lenders and corporates to embed its solutions via the latter’s capabilities. Through this partnership, Satago intended to allow lenders and corporates to incorporate its flexible Invoice Finance and Cash Flow solutions by leveraging mmob’s integration capabilities.

In an effort to simplify digitisation for customers, the collaboration between the two companies followed Juniper Research’s report which underlined a 148% growth in the Embedded Finance market, reaching a revenue of USD 228 billion by 2028. By joining forces, Satago and mmob aimed to allow lenders and corporates to integrate the former’s 3-in-1 Working Capital solution for small and medium-sized enterprises (SMEs) into their digital platform via a single code. Through this approach, the two companies were looking to minimise the initial integration time required to embed Satago, reducing the possible difficulties faced by development teams.

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