TORONTO, June 22 (Reuters) - Bank of Nova Scotia said on Wednesday it was partnering with financial technology company Kabbage to enable small businesses to take out loans of up to C$100,000 ($78,290) online in as little as seven minutes.
Banks that initially viewed fledgling financial technology companies as a threat are increasingly looking to work with them rather than be left behind.
Scotiabank, Canada’s third-biggest lender, said it would initially offer the new service to more than 100,000 small business customers in Canada and Mexico that are currently not borrowing from the bank.
The loans will be offered over six- or 12-month terms and have interest rates as low as 1 percent per month. Customers will be able to pay them back early without incurring extra fees.
$1 = 1.2773 Canadian dollars Reporting by Matt Scuffham; Editing by Lisa Von Ahn