Revolutionising SME Lending with Open Banking Transaction Categorisation

Businesses want funds as soon as possible and lenders want to grant those funds while operating within a fully responsible framework.

But more data alone isn’t enough. For the lending process to be more efficient as well as more accurate, it needs to be categorised. This is where our new open banking enrichment proposition comes in, transforming the SME lending process by offering unparalleled insights through advanced business account transaction categorisation.

Real-Time Data: The Power of Open Banking

By leveraging open banking technology, our solution provides lenders with real-time access to SME financial data. That means access to at least 12 months of near real-time data, including both current account and credit card transactions. This offers insights into a business’s financial health.

We then automatically categorise transactions so lenders have an easy-to-interpret analysis of how that particular business operates. Transactions are split into 32 incoming transactions and 115 outgoing transactions. No other open banking provider gives lenders this level of granularity, empowering them to make faster and more accurate lending decisions.

Enhanced Fraud Prevention

One of the key advantages of our open banking solution is the significant reduction in fraud risk. As data is sourced directly from banks, the authenticity of the financial information is assured. This direct connection eliminates the risk of manipulated or falsified financial statements, providing lenders with a true picture of an SME’s financial situation.

Complementing Existing Data Sources

Lenders have most likely spent time designing their own models and using particular data sources. Working with Yapily, you don’t have to rip everything up and start again. Our transaction categorisation solution enhances your current data sources, rather than replacing them. By incorporating bank and card information, you can complement your existing data, and if you already receive statements, open banking will help automate your processes and reduce clerical errors.

By integrating seamlessly with your existing decision-making processes, our solution provides an additional layer of insight. This comprehensive approach allows for a more nuanced understanding of an SME’s financial behaviour and creditworthiness.

SME-Focused Expertise

While many open banking solutions focus primarily on consumer data, our competitive edge lies in our deep understanding of the SME market. Our categorisation system is specifically tailored to capture the unique aspects of business transactions, providing insights that are truly relevant to SME lending.

The Future of SME Lending is Here

Back in 2006 British Mathematician Clive Humby coined the phrase ‘data is the new oil’. Since that day, many businesses have used the quote to demonstrate that data is an unbelievably valuable resource which is essential for running modern companies successfully.

However, this isn’t quite what Humby meant. Humby’s lesser-quoted point was that data, like oil, needs to be refined to be truly valuable. We designed our open banking enrichment proposition to not just offer more raw data, but refine that data through categorisation, making it instantly usable for SME lenders. By providing real-time, accurate, and fraud-resistant financial data, we’re not just improving the lending process – we’re revolutionising it.

Ready to transform your SME lending capabilities?

Contact us today to learn more about how our open banking transaction categorization can empower your lending decisions and drive your business forward.