Codat, a London-based technology company that connects the internal systems of small businesses to banks, fintechs and other financial institutions, has been awarded £2.5 million by BCR (Banking Competition Remedies).
The funding will be used to open up Codat’s API on a self-serve basis, allowing a much larger group of fintechs to build new products and services for SMEs.
Codat allows business data to flow back and forth between institutions in real-time. By removing the technical and financial barriers to getting started, a new breed of nimble products and services for the benefit of small businesses can be brought to market faster and easier than ever before.
The award was made in the latest round of funding declared by BCR, which was established to implement the Alternative Remedies Package of measures agreed between the UK Government and the European Commission.
“Developers, not bankers, are going to be the people to build the financial products we need for small businesses here in the UK. BCR has recognised that by awarding this money to Codat, they are benefiting potentially hundreds of products instead of just one,” said Pete Lord, CEO at Codat.
The £2.5 million grant builds on the original £ million Codat received from BCR in 2019. It will help the company to go further and faster in supporting the rapid commercialisation of diverse SME financial services by removing technical and financial barriers to data integration.
Codat is on track to deliver all of its commitments attached to the £5 million funding award. It has committed to building an additional five accounting integrations, ensuring that new products developed will reach the highest number of SMEs.