Codat, the universal API for small business data, announced a partnership with nCino, the worldwide leader in cloud banking, to automate and accelerate banks’ ability to underwrite small business loans around the world.

“Our platform makes it easier for credit analysts to gain a clear picture of credit risk,”

“Financial institutions have the opportunity to deliver a better experience to their customers by automating the flow and exchange of data throughout the lending lifecycle. We’re proud to be partnered with Codat to further automate processes that enable financial institutions to significantly improve efficiency, accuracy, and create cost savings whilst being able to respond to actual customer need in real time.”

                                                              Thomas Byrne, General Manager, EMEA at nCino.

The time it takes banks to “spread financials,” or transmit data from a borrower’s financial statements into the bank’s financial analysis platform, is drastically reduced by nCino’s seamless solution. More than 1,750 financial institutions use the nCino Bank Operating System worldwide. It will be quicker and simpler for small businesses all across the world to get financing thanks to the partnership with Codat, which will bring the same efficiency to underwriting loans for the banks nCino serves.

“The process of underwriting small businesses remains incredibly labor-intensive for most institutions,”

“A large number of the banks we speak to are still having to request financial data from customers on a quarterly basis and manually input that data into their loan management system – a process that is prone to error and a pain for the customer. The power of this partnership is that we’ve built our automated data collection and categorization capabilities directly into the nCino platform, which is already used by over a thousand institutions worldwide. They can get started now with very little lift to implement.”

                                                                                                           Codat’s CEO Pete Lord.

One of the first financial institutions to adopt the new integration, Recognise Bank, eliminated significant data entry requirements.

“As a bank focused on SMEs, using technology from best-in-class providers that offer us scalability and flexibility is a key to our success. We looked at other solutions for streamlining the collection of data from customers, but Codat was the clear choice because it offers the ability to automatically categorize accounts and validate accuracy across multiple data sources. Automating our internal underwriting processes means we can provide our customers with a quicker, more efficient and frictionless service. The integration between nCino and Codat further supports our mission to make small businesses’ lives easier,”

                  Mo Fadaei, Director, Banking Platforms and Partnerships, Recognise Bank.

According to a 2021 poll by BDO, 97% of financial institutions have plans for digital transformation, but just 30% are actively putting those plans into action. This is due to the fact that the majority of banks are constrained by the difficulties and costs involved in retrofitting current systems to include new capabilities while adhering to stringent compliance regulations.

This collaboration is the most recent in Codat’s range of tools for streamlining and automating the credit process. After receiving countless requests from the company’s lender clients for a product that would support quicker business decisions without escalating risk, Codat launched Assess earlier this year, enabling smarter credit decisions on small to medium-sized businesses with real-time customer data via a single API.