Introducing improved categorization for bank statements

We’ve released improvements to our bank transaction categorization, using the complimentary context available in accounting records to increase the accuracy of categorization.

What’s new?

This update introduces improvements to our bank transaction categorization enrichment feature to increase the confidence and reliability of categorization.

Our bank transaction categorization engine can operate on banking data alone, but this release allows lenders to enhance it with accounting data. This gives more comprehensive insight into the applicant’s transactions.

When both banking and accounting data is connected, Codat will search for a match for the bank transaction in the accounting data based on the date, amount, and counterparty associated with the transaction. Where a match is found, we use the account type details associated with that transaction (e.g. income, expense, asset, liability, or equity) to offer lenders additional context.

You can learn more about how it works here.

Who is this relevant for?

Lenders and underwriters looking to underwrite with accurate, real-time cash flows.

How to get started?

For Lending API companies where accounting and banking data is connected, the update is automatically available. To learn more about bank statement enrichments or connecting banking data via the Lending API, contact your Codat Account Manager.