Plaid has partnered with Codat, an API for business accounting, POS, and commerce data, to help SMEs access the tools they need to manage their finances effectively.
The partnership aims to help streamline the loan underwriting process. Together, Plaid and Codat will enable SMEs to instantly connect and share a comprehensive range of their financial data with lenders during the application process so they can more quickly gain access to the capital they need.
Plaid’s API supplies user-permissioned banking data, which means transactions data comes from a trusted bank source, while Codat’s API provides access to contextual accounting, POS, and commerce data. Accessing data from these two sources allows lenders to form a more complete and verifiable understanding of a business customer, beyond what’s available from credit reference agencies, via one simple API integration.
It will also enable lenders to flag key indicators early like increasing creditor pressure or concentration risk that Open Banking data alone may not reveal. As a result, lenders can assist their customers with monitoring their cash-flow or tailor the loan servicing experience to an SME’s particular financial needs.
