The London-based fintech provider Codat has been awarded £5M as part of Pool D of the £425M Capability and Innovation Fund (CIF) that forms part of the total £775M package, administered by Banking Competition Remedies Ltd (BCR).
Codat, which offers a way for SME financial services providers to connect directly with the software platforms used by small businesses to manage their finances, will use the funding to accelerate its ongoing work of helping to build better financial products for SMEs.
Alex Cardona, co-founder and COO of Codat said:
“Open Banking is great, but for small businesses it only covers a small portion of what’s needed. What will really change the game is Open Accounting. There’s a reason lenders to small businesses ask for both bank statements and management accounts – you need the accounts as well.
“Providing simple access to the data in their accounting system means small businesses can benefit from far better financial services and products.
“We’re too far into the 21st century for small businesses to be wasting their time manually keying in data and scanning PDFs every time they need a loan. They want financial services to work seamlessly with the digital accounting systems they already use, such as Xero or Quickbooks.
“At Codat, we’re building Open Accounting, and this award will enable us to allow more and more financial service providers to build the next generation of financial services products for small businesses.”
Codat makes data integration seamless for the small business economy.
We are the pipes that connect small business data to drive better products and services, whether that's a lender pulling information from a company's cloud accounting package, or a payment terminal immediately pushing sales information into company accounts.
We're building an ecosystem of connected datasets. Through our single API companies can easily access consented, contributed data from their small business customers.
14,000 UK small businesses have already shared their accounting data with third parties including banks, new lenders and payment services providers, using Codat’s API.