Finverity and Abu Dhabi Global Market launch real-time credit data API for SMEs and businesses

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Finverity, the award-winning mid-market supply chain finance (SCF) platform focused on emerging markets, is pleased to announce the launch of its real-time monitoring credit data API. UAE banks and investors will be the first to benefit from the stand-alone solution due to the UAE’s leading position as a key trade finance center for Finverity. At the same time, the API functionality is now also available to funders around the world on the ADGM Digital Lab and the Finverity platform. The launch marks the successful completion of the Finverity proof of concept commissioned by ADGM (Abu Dhabi Global Market) following the victory of FinTech Abu Dhabi’s Innovation Challenge 2020.

Finverity has developed an easy-to-integrate Application Program Interface (API) solution that provides near real-time access to financial data stored in SME accounting software packages. This level of access to near real-time SME financial data is unprecedented, especially for banks and other financial institutions in the MENA region. They will now be equipped with enough data to make informed underwriting decisions on both SMEs and Corporates. This will reduce the current high level of SME loan rejection rates due to lack of financial data. API also reduces the time it takes for a funder to process a loan request and disburse funds, commonly referred to as “time to cash”.

Game changer for debt and receivables financing

The availability of quality credit data in near real time is a game-changer for debt and receivables financing. Since the average lender’s exposure to an SCF transaction is short-term (3 rolling months on average), a lender should be able to quickly identify credit issues as they arise. that they occur. The launch of near real-time data means that lenders are now able to detect deterioration in credit quality early enough and therefore terminate a transaction with little or no loss. Likewise, lenders may choose to increase a limit if credit quality indicators show improving trends. All lenders integrated into the Finverity platform will be able to benefit from the new credit data API.

Finverity’s API currently supports 16 cloud-based and 2 on-premises accounting integrations, including Oracle NetSuite, Sage Business Cloud Accounting, Zero, and Kashoo. The Finverity API is available on ADGM’s Digital Lab and the Finverity platform.

Create a level playing field for SMEs and midcaps

Assessing the credit risk of small and medium-sized enterprises (SMEs) is one of the most difficult tasks in lending. While differences exist globally, typical challenges arise from outdated or non-existent financial data, a lack of confidence in the governance of these entities, and costly and unreliable oversight processes that depend on corporate staff. borrowing entity providing timely information. Due to the high integration and operating costs relative to the profits generated, it was often not economically viable for banks to engage with smaller suppliers and buyers of mid-market companies, despite the results in many mid-market SMEs having strong creditworthiness. By digitizing and automating the credit assessment process, Finverity’s API dramatically reduces these costs, enabling greater financial inclusion for SMEs.

The UAE’s mid-market sector has in the past had more difficulty engaging in SCF programs than larger companies. The SME sector is essential for the growth and diversification of the UAE economy. Although local SMEs make up 95% of the country’s businesses and 86% of the private sector workforce, they only account for 5% of total bank loans in the UAE. While the UAE’s SME domestic credit share leads other countries in the region, it remains well below levels in developed markets.

Viacheslav Oganezov, CEO and co-founder of Finverity, commented:

“We are excited to launch the Finverity Credit Data API at a time when efficient and transparent solutions to drive global trade are needed more than ever, given the recent growth in the trade finance finance gap at $ 1.7 billion. As global trade continues to evolve, the UAE has the potential to strengthen its position as a key center of global trade finance and utilize solutions that help allocate capital more securely and wisely on the basis of better data and increased transparency. Fintech platforms are essential to facilitate this process. Finverity’s Credit Data Improvement API offers an attractive plug and play solution that requires little time and money to implement. With SMEs playing a crucial role in global trade, improving their access to finance is a key step towards closing the current global trade gap.

Alex Fenechiu, COO and co-founder, commented:

“To effectively allocate capital, investors need both the most recent historical information and understand what’s going on in a business in near real time. Near real-time information gives donors the data points to act quickly and avoid the problem of acting “too little, too late”. This makes a big difference because traditionally, lenders receive backdated financial data from borrowers that are up to 6 months old, by which time it is too late to take meaningful action. Finverity’s Credit Data API enables lenders to identify and distinguish with much higher certainty the creditworthiness of borrowers and allocate capital more efficiently, rewarding the best borrowers and avoiding “passengers.” illegals “who have benefited from the poorer credit data provided by SMEs until recently”.

Wai Lum Kwok, Senior Executive Director, FSRA, Abu Dhabi Global Market, said:

“SMEs are the main contributors to the economic growth and diversification of the UAE. ARSF welcomes scalable solutions that improve financing conditions for SMEs, including those that significantly reduce processing costs through automation. The availability of high-quality credit risk data on UAE SMEs will help attract a significantly larger pool of financing capital and remove barriers to their growth. The release of Finverity’s API to the ADGM Digital Lab is also an exciting step as it allows interested parties to consume and test the tool and evaluate the solution before a formal procurement process.

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