Codat, the financial API provider, is working with Visa to offer more comprehensive data on small to medium-sized enterprises (SMEs) for European banks, Codat announced in a Wednesday (Nov. 18) press release.
Visa will aid Codat in expanding its single API to help business data flow better between FinTechs, SMEs and other companies in need. Banks and lenders will be able to access the partnership to get more holistic financial profiles in less time, with the process taking minutes as opposed to days.
That, according to the release, will help with finding out which businesses are worthy of credit and affordability checks, with more accuracy as opposed to before.
Overall, the release says, Visa clients will now have access to a more robust marketplace and digital banking services.
“Visa has recognised that we address a universal pain point in SME financial services: the manual, slow, and limited exchange of financial data between businesses and their service providers,” Codat CEO Peter Lord said in the press release.
“Our modern API technology provides the means to do this better, giving Visa’s clients the ability to offer SMEs a suite of improved and more agile products and services, as well as reduce their own operating costs," he said.
In addition, the partnership between Visa and Codat is part of the Visa FinTech Partner Connect program in Europe.
Last year, according to PYMNTS, Codat also joined up with five°degrees’ Open Banking Marketplace, which allowed its small business customers to connect their bank accounts with accounting platforms. Codat Co-founder and Chief Operating Officer Alexander Cardona said it was an "open accounting" platform. Cardona, talking with PYMNTS at that time, said it was important that the SME accounting industry embrace accounting connectivity in cases that need more than standard data sharing. He said accounting platforms were "increasingly" at the center of the small business ecosystem.