FinTech Profile: Kabbage, the fast-growing unicorn

By Amber Donovan-Stevens
This week FinTech Magazine looks at American fintech Kabbage, the innovative cash flow unicorn. [image: Kathryn Petralia and Rob Frohwei] Fintech...

This week FinTech Magazine looks at American fintech Kabbage, the innovative cash flow unicorn. 


 

[image: Kathryn Petralia and Rob Frohwei]

Fintech company Kabbage is a business lender founded in 2008 by Kathryn Petralia, Rob Frohwein and Marc Gorlin. Kabbage has a particular focus on lending to small companies. The company has ascended to unicorn status after a US$1bn valuation; an achievement that also places Petralia as the 97th most powerful woman in the world. But what exactly separates Kabbage from its competitors? 

SEE MORE: 

The Forbes Fintech 50 2019-listed company  uses innovative AI technology to make small business lending both more efficient and more profitable. Kabbage is capable of making loan decisions in 10 minutes, rather than the weeks that banks take. According to a survey by the Federal Reserve Banks survey on small businesses, online lender use has grown exponentially, from 19% in 2016 to 32% last year, meaning business looks good for Kabbage. Since it was formed, the fintech has lent as much as $8bn and continues to evolve rapidly as it launches new cash flow needs prediction tools. All Kabbage business loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.

In an interview with Kathryn Petralia, Kabbage and Eric Schurenberg, Fast Company and Inc, Petralia shared that about 80% of the loans are approved in under eight minutes from companies that are generating around $5,000 a month. 

Be sure to check out the interview for more on how Kabbage leverages data to achieve these fast approval times. 

For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.

Follow us on LinkedIn and Twitter.

 

Share

Featured Articles

Pay Later: Does Apple's latest offering threaten BNPL?

We ask several industry insiders whether Apple Pay Later, the tech firm's foray into BNPL, threatens the market and risks marginalising smaller players.

Is Launching a Fintech Unicorn Easier than Ever Before?

With new unicorns in the fintech space emerging every week, we take a look at the traits that enable companies to scale at pace

Why BaaS is transforming the financial services space

We look at the latest changes in the BaaS space, taking into consideration new technologies, marketplace demands and changes in the financial landscape

Wealth management trends and the ‘new normal’

Financial Services (FinServ)

Innovation is driving fintech, Shuki Licht, Finastra CEO

Financial Services (FinServ)

SIX SME Banking Trends that are Disrupting the Space

Banking