#forward looking data

Who Can Use Financial Data APIs?

Lenders

By getting more real, accurate, and futuristic information of a borrower, lenders can have a greater edge over the competition. Financial data APIs provide information to lenders they need to check the creditworthiness of their borrowers and make intelligent lending decisions than other lenders.

Financial Planners and Analysts

Financial planners and analysts can also use financial data APIs to turn unstructured data from different platforms into structured financial statements for their customers. They can be confident they are providing best-interest advice by making recommendations based on real-time information.

Auditors

Financial data API can help them to get a clear view of the future financial health of a business. It has the potential to transform external auditing and could make it possible for external auditors to improve auditing by accessing historical, present, and real-time data.

Investors

Investors can also leverage a forward-looking data API to collect rich financial data on their portfolio companies and analyze it to gauge their portfolio performance. APIs help investors to accurately calculate the value of a company and decide whether this business is suitable for investing or not.

In this digital lending market, the ability to apply for business loans online has increased. But the financial institutions aren't keeping up with consumer expectations or fintech capabilities. Most of the banks, credit unions, and alternative lenders use digital methods to provide loans online, even though the pandemic significantly increased demand for digital service. It becomes more important than ever for financial institutions to make their digital lending processes easier, quicker, and more hassle-free.

Digital lending does not only mean that a borrower can apply for a business loan on a laptop or mobile. But it means the borrower can seamlessly complete the entire process digitally, from applying to approving, without visiting a physical facility. As a lender, If a potential borrower struggles to apply and get a loan quickly from your lending platform, you’re simply faking digital.

Today, consumer behavior has been changed due to innovations in the lending and banking sector. And this change has increased exponentially due to the coronavirus outbreak. From applying for loans online to conducting entire KYC processes on the video call, there have been rapid technological changes for the past few years.

When a business loan can be applied with just a few clicks online from a mobile or laptop or a new current account can be opened without a visit to a bank, the entire industry takes notice.

Data and Advanced Technologies For Digital Lending Success:

When borrowers’ most accurate and real-time data and advanced technology are combined with revised processes and innovative products, digital lending can be much more inclusive. Instead of providing loans to most credit-worthy customers or large businesses using historical data and traditional credit scoring methods, digital lending can now leverage include borrowers with no or limited credit history as well as create and offer new credit solutions altogether.

Data, AI and ML-based tools, advanced analytics, and automation allow lenders to determine the ability and willingness of a borrower to repay loan obligations. Utilizing data and analytics, lenders can see deep insights into a borrowers’ past, present, and future financial health.

Today, some FinTechs firms are creating ground-breaking financial data APIs for lenders using AI and ML. These APIs allow lenders to access and analyze the most accurate, real-time, and efficient data, so they can better understand their borrowers’ needs and offer customized loan products and services. Also, lenders can use this data for streamlining the loan application process, mitigating credit risk, preventing fraud, borrowers' evaluations, and better credit decisions.

Data and API Leads to Better Customer Experience:

To become a financial expert of the future and gain competitive advantages, digital lenders will need to make their lending capabilities more easy, quick, and smooth for borrowers by improved customer experience. The key will be to reduce the time it takes to complete the loan application process, provide borrowers a platform to find and compare loan products, offer customized loan products and services and design an application for the best user experience.

COVID-19 has forced financial institutions to adopt newer, innovative, and easy-to-use digital tools to identify and meet their borrowers’ unique financial needs. Besides, borrowers changed the way they transacted, communicated, and purchased loans online. This comfort level has increased the expectations of borrowers that need to be fulfilled. Leveraging financial data API to access and analyze the most valuable data can help lenders personalized solutions for each borrower at the time of need.

● Digitization is reshaping customer’s expectations in the small business industry. Borrowers want a smooth, hassle-free experience when purchasing a business loan. This includes

○ Low-interest rates

○ Minimal documentations

○ Same-day or Instant Approval

○ As few touch points as possible

● Today, most small businesses prefer to buy from lenders that provide a preferred buying experience, even if they have high-interest rates.

● Yet in this new reality, most lenders continue to face traditional challenges that could easily be solved with intelligent credit scoring methods using a futuristic financial data API.

● You can solve problems like:

○ Outdated and manual loan origination processes

○ Traditional credit scoring methods

○ Inaccurate borrower evaluations

○ Unscalable business lending programs

○ Irrelevant loan products and services

● It helps solve all these problems by providing you the most robust and real-time data of your potential small business borrowers.

● It is the provider of a lender-first API technology to access and analyze the most valuable forward-looking data of your borrowers.

● It helps you see a deep critical insight into borrowers' financial health and accurately predict their financial future. It allows lenders to:

○ Integrate with all of the major accounting software systems

○ Get real-time cash flow forecasting supported by numerous data attributes

○ Normalize accounting and financial data

○ Make small business lending complicated and less risky

● It enables higher ROI on every business loan. AI and ML-driven data analysis to transform raw data into meaningful insights help lenders to better understand their clients, offer customized solutions, reduce credit risk, determine creditworthiness and boost profit.

● Little to human involvement in loan origination and credit decisioning with no compromise in quality.

● The functionality inside for small business lenders would otherwise require integrating separate software tools to collect and analyze different types of financial data.

● It is an intelligent system that helps you in streamlining loan origination, borrowers’ evaluation, mitigating risk, preventing fraud, enhancing customer experience, and making data-informed lending decisions.

● Applying old-school credit scoring methods and using out-of-date data where new market conditions prevail could restrict lending and hinder economic growth. Lenders who adopt new financial technology to serve their customers better, reduce credit bias, and make loans fairer will succeed in the marketplace.

● Get a personalized demo today and make more money providing fast and easy loans tomorrow.

With the help of Machine learning & Algorithm, pre programmed logical data can be used in predicting future financial and accounting data

FRAUD DETECTION:

Reconciliation of the Accounting and Banking data

Payment discrepancy

ADVANCE BORROWER EXPERIENCE

Assist in Investment decision

Provides customer’s risk assessment

BETTER RISK MANAGEMENT

Predictable cash flow measures borrower’s eligibility to repay.

Charge interest rates considering borrower’s forecasted data.

COST EFFECTIVE

Underwriters can drive faster decisions

Less dependency on Human in accessing and predicting data

PROMOTE STRATEGICAL DECISION

Providing other related advisory services directly impact Lenders bottom line