3 Financial Data APIs that Could Revolutionize Small Business Lending Industry

 

Financial data APIs (Application Programming Interface) is a set of programming codes and a set of functions that allow two financial applications to communicate with each other. Traditional banks, credit unions, and other non-banking financial institutions can leverage these APIs to access, analyze and use the most robust and real-time financial data of their borrowers. Financial data APIs enable lenders to reduce credit risk, determine creditworthiness, streamline loan application processes, improve customer experience and make intelligent lending decisions. 

The goal of financial data APIs is to allow a lender to access financial information exactly when they need it. These APIs help lenders who want to customize and independently automate their loan programs. Lenders also use these APIs to integrate with multiple financial systems and access multiple financial data points. 

These APIs collect, normalize, and standardize financial data, using advanced analytics and ML and AI-based systems, and transport the most real-time and robust data to lenders. Small business lenders leverage financial data APIs to access large amounts of information held in multiple financial systems and applications. 

Here are the top three financial technology companies that provide the most innovative and futuristic financial data APIs for small business lenders. 

Codat

Codat is one of the most sought-after financial data API-based platforms, specializing in small and medium-sized financial data exchange. It enables SMEs to build new and innovative products and services with easy, real-time data connectivity to their financial software. 

The various data sources include accounting, banking, and commerce. From data collection to KYC, decisioning, fraud prevention, forecasting, and reducing risk, there are several use cases of Codat financial data API. 

Using Codat API may be attractive to business owners who:

●      Are looking for a faster and affordable alternative to in-house data APIs

●      Need rigorous standardization of data

●      Want scalable and reliable solution, access to the data immediately regardless of size

●      Want to do a depth review of their borrowers at the click of a mouse 

ForwardAI

Though it’s a lesser-known financial data APIs, however, it’s poised to have a significant impact on the small business lending industry. ForwardAI is a lender-first API technology that helps lenders to access, analyze and use the most robust accounting, cash flow, and financial data suite for small business lending. 

With this API, lenders can integrate with all the major accounting software systems in real-time. It uses advanced analytics, machine learning, and artificial intelligence technologies to collect, analyze and transport the past, present, and predictive cash flow data. With over 100 forward-looking data points, ForwardAI’s API offers a precise picture of a small business’s future financial health. 

Whether you’re a lender or an accountant or a small business owner, you can leverage the benefits of this API to grow your business. The best thing about ForwardAI’s API is that it offers more forward-looking data points than any other service provider in the market which are the most important factors to determine a borrower’s ability to repay and reduce credit risk. 

Why Choose ForwardAI’ API?

●      Automates 160+ real-time business data points to predict a small business's future viability.

●      Simple to use - gets you up and running in less than a day

●      Meaningful and easy-to-understand insights in the form of intuitive charts and graphs

●      Normalize it into one portal, one format, regardless of the customer’s accounting software.

●      Integration with all the major accounting software

●      Greater visibility into the most valuable data of borrowers

●      Smarter risk assessment with cash flow based data 

Validis

Validis is yet another great financial data provider that has developed the smartest accounting integration available in the market today. Using Validis’ financial data API, you can seamlessly transform your client’s data into clear, actionable insights. 

This data API can help lenders access real-time, standardize accounting data to originate loans faster, detect fraud and make smarter lending decisions. It enables SMEs to share their full financial data history directly with lenders in a standardized format, speeding up loan decisions, powering audits, and improving insight. 

Whether it’s a bank, credit union, or an alternative lender, all types of lenders can leverage the benefits of Validis API. You can deliver value using Validis in loan origination, portfolio management, credit risk management, and lending decisions. 

Codat vs. Validis vs. ForwardAI Comparison Chart

What makes Validis a great financial data API provider?

●      Smartest accounting integration through one intelligent API

●      Connect to every major online and offline SME accounting package

●      Provides the most real-time, accurate, and standardize accounting data

●      Delivers a wide range of enterprise-grade deployment options

●      Developed by trained accounting professionals

●      Top-notch client support service 

With so many benefits of financial data APIs, if you’re also planning to purchase one for your financial institution, these are the top three that you must consider. Leverage an API to collect, format, and interpret your borrowers’ most accurate and real-time financial data and revolutionize your lending process.