Today we’re announcing that Codat clients can access Open Banking data from Basiq via our Banking API. Our partnership with Basiq, the leading Open Banking provider in Australia and New Zealand, enables Codat clients to gain consented access to their customers’ transaction data from more than 20 of Australia’s leading banks.
Why is banking data important for lenders?
Banking data is one of the most reliable and accurate data types for underwriting. Bank transactions offer the most comprehensive, and accurate breakdown of cash flow. To determine if a borrower can afford to repay a loan, lenders need to understand full cash flow including how much revenue the borrower is generating, what their expenses amount to, and what liabilities they have, such as other loans or debt. Banking data is one of the few data types which provides a full breakdown of cash flow, in real-time.
When accessed via API, banking data is hard for fraudsters to manipulate, which makes it one of the most accurate sources of truth for lenders to understand creditworthiness. It demonstrates how creditworthy that business is right now, given recent revenue and expenses, not based on data from 6 months ago. With a record of full historical and complete cash flow, lenders can better understand affordability and in turn, better predict defaults, and protect their margins.
Open Banking data via Codat: 1+1=3
Similar to TrueLayer and Plaid, Basiq enables small businesses and consumers to easily share their real-time transaction data with fintechs and financial service providers. Our new integration with Basiq will enable Codat clients to access all the data they need to effectively underwrite business applicants via our universal API, without the applicant having to share sensitive information via email.
By leveraging Open Banking data via Codat, our clients are able to pull real-time banking data, as well as accounting, commerce, and subscription data, all via a single API. Clients can create a single simple journey for customers to share all of their data, cutting down the time and effort required by customers to apply for financial products like business loans and improving their overall experience.
Once connected, Open Banking data from Basiq can flow into Codat’s Assess product, where lenders can automatically cross-reference bank transactions with accounting data to validate any inaccurate or missing transactions. They can get a clearer picture of how accurate the data they are underwriting really is, without the guesswork.
Why did we partner with Basiq?
Basiq is the market leading Open Banking provider in the Australian market, boasting over 700,000 active monthly users with more than 1.5 million users having shared their data via Basiq, to date.
Codat chose to partner with Basiq due to the unique capabilities of the ‘Basiq 3.0 Platform’ which extends beyond the Consumer Data Right’s (CDR) Open Banking system. Basiq’s platform allows access to financial data across a number of institutions, including those available through Open Banking and others not yet part of the system. Codat clients have flexibility in how they choose to access the data, so they can ensure a reliable data flow, while the capabilities of the CDR continue to be extended.
To find out how you can get up and running with the integration, visit our docs or for existing clients, speak to your Account Manager.