Codat, the universal API for small business data, announced that it has entered into a product partnership agreement with Moody’s Analytics, a global provider of analytic tools and risk assessment capabilities. The Codat API is being integrated into Moody’s Analytics CreditLens™ solution, and will enable financial service providers using Moody’s Analytics’ solution to connect with many accounting platform providers, meaningfully increasing efficiencies for underwriting of small business loans. The long-term vision for this partnership is to improve credit access to millions of small business owners nationwide.
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Half of U.S. small and medium-size enterprises (SMEs) report that getting a business loan is difficult or takes too long. Although small businesses often seek small-dollar loans, these typically also have higher underwriting costs, which makes them more difficult for banks to efficiently offer. Automation makes it possible to serve the needs of even the smallest SMEs efficiently and profitably.
“We find ourselves in a time of rapid change, where new approaches to financing and technology are becoming increasingly important to small businesses,” said Peter Lord, CEO & Co-Founder of Codat. “Moody’s Analytics has impressive global scale and reach, so this partnership holds the potential to meaningfully reverse the credit crunch facing SMEs while opening up new profitable lines of business for financial institutions. Together we will be able to extend the benefits of Codat’s two-way flow of financial data to more lenders and financial institutions, allowing them easier access to a wider data set to make high-quality, data-driven credit decisions.”
The CreditLens solution is a credit lifecycle management solution with access to industry-leading data and analytics. It simplifies and standardizes the way firms collect, analyze, and store credit data, laying the groundwork for robust credit origination. Codat will enhance the CreditLens decision framework by enabling automated spreading of real-time accounting data using machine learning. It will also make use of its ability to map the accounting information of any small business instantly and intelligently to a standard chart of accounts.
“We are excited to welcome Codat as a new accounting data aggregation technology partner to boost the value of Moody’s Analytics lending solutions. Codat provides a seamless interchange of real-time data to enable valuable credit insights and predictive capabilities,” said Eric Grandeo, Product Head for Moody’s Analytics Lending Solutions. “We are both dedicated to helping financial service businesses gain deep understanding of their client’s risk and behavior, and make better decisions based on real-time accounting, banking, and commerce data. Ultimately, the partnership will afford small businesses across the U.K and U.S. access to more credit options, opportunity and growth.”