Codat Announces Partnership With Moody's Analytics to Improve Small Business Lending
Codat has announced a partnership with Moody's Analytics to integrate its universal API into Moody's CreditLens solution, enhancing underwriting efficiencies for small business loans. The partnership aims to address challenges faced by U.S. SMEs in accessing loans, with half reporting difficulties. By automating data flows, both companies seek to improve credit access for millions of small business owners, allowing lenders to make better data-driven decisions. The collaboration is expected to open up profitable business lines for financial institutions.
- Integration of Codat API into Moody's CreditLens solution enhances credit assessment for small businesses.
- Partnership aims to improve access to credit for millions of U.S. SMEs, addressing existing challenges in loan accessibility.
- Automation of financial data exchange is expected to lower underwriting costs and increase efficiency for lenders.
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NEW YORK, Jan. 7, 2022 /PRNewswire/ -- Codat, the universal API for small business data, announced today 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.
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."
About Codat
Codat is the universal API for small business data. Codat's API provides real-time connectivity to enable software providers and financial institutions to build integrated products for their SMB customers. Codat clients range from corporate card providers and forecasting software to lenders, and use cases span automatic reconciliation, loan decisioning and more. Codat was founded in 2017 and has offices in London, New York, San Francisco and Sydney. For more information, visit www.codat.io.
About Moody's Analytics
Moody's Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody's Analytics, visit our website or connect with us on Twitter and LinkedIn.
Moody's Analytics, Inc. is a subsidiary of Moody's Corporation (NYSE: MCO). Moody's Corporation reported revenue of
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FOR CODAT: Chelsea Allison
Communications/PR, CMAND for Codat
312-775-2856
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