A firm working in the field of helping professionals get a more accurate view of what businesses are actually worth has brought out a new service aimed at bankers, and it has scored a key endorsement.

BizEquity, the US-headquartered business valuation service that operates in regions including Europe and Asia, has launched what it calls its Banker Office product, designed it says to help banks compete with online alternative lenders. The product has won the endorsement of the American Bankers’ Association.

As peer-to-peer platforms and other “non-bank” financing channels have expanded, this now puts banks, which have been hit by tougher capital rules after the 2008 financial crisis, under pressure. The loan books of online lenders have been growing by an estimated 175 per cent a year, BizEquity says. P2P platform is expected to reach $350 billion by 2025, the firm said.

With many businesses being in private hands rather than on listed markets, it poses a challenge for wealth managers seeking to get a clear idea of what business owners are truly worth – vital information in framing the most suitable kind of financial advice and planning. Firms such as BizEquity see themselves as equipping wealth managers – and other professionals – with tools to serve clients more effectively and unearth profitable new lines of business.

BizEquity says its Banker Office provides banks with a dedicated platform and enables them to provide clients with real-time insight into the fundamental question about their business: what it is worth.

The American Bankers Association has endorsed BizEquity after a due-diligence process and review by industry experts and field-testing by bankers. BizEquity was required to meet ABA’s quality standards and satisfy key criteria, including the company’s management strength, sound risk management and security practices, and superior customer support, it said in a statement.

The firm works with over 90 financial institutions, such as US Metro Bank, Dynasty Financial Partners in New York, and one of the UK’s largest wealth management firms. To date the company has valued over 29.4 million private businesses.

The business valuation market in the US is expected to reach $7.4 billion, with no single firm having more than a 3 per cent market share (source: IBIS World).