Plaid, Codat team targets UK SME lending sector
plaid and Codat unveiled a new offering in the UK that businesses say will make it easier for small and medium-sized enterprises (SMBs) to apply for credit and banks to review a wider range of financial data when making credit decisions, according to a plaid company blog entry.
“Through the partnership, Plaid and Codat want to help streamline the lending process,” says the article. “Despite [SMBs’] As they play a pre-eminent role in the UK economy, the barriers they face in financial services are often ignored. “
The Post continues: “57 percent of all [SMB] Loan applications are either abandoned because they are just too tough or ultimately rejected. And the average conversion of [SMB] Loans from a select high street bank were only 8 percent. Together, Plaid and Codat make it possible [SMBs] Connect and share a full range of your financial information with lenders instantly during the application process so they can access the funds they need more quickly. “
Plaid, which employs around 500 people in five branches, says it creates application programming interfaces (APIs) for connecting smartphone apps to financial institutions website. Codat, based in London, is also creating an API and focuses on helping SMBs connect different systems and data sources according to their own website.
The technology aims to make it easier for banks and businesses not only to assess risk before making credit decisions, but also to make arrangements that allow lenders to easily monitor cash flow or other metrics that can indicate challenges early on.
The new Plaid and Codat offering comes at a time that some observers have described as full Loan options for UK SMEs, due in large part to the UK government’s Bounce Back Loan Scheme, which had raised $ 53 billion in funding for the sector by November.