Challenger bank Atom has joined forces with Codat to simplify its business lending process.

The partnership will see Codat provide its universal API for small business financial data, which will enable Atom to directly integrate with business customers' accounting platforms, removing the need for manual submissions.

By connecting their accounting package directly with Atom, business customers will be securely sharing access to accounting data that is encrypted in transit and at rest. This represents an easier and more secure way to share information.

It will result in a streamlined onboarding process and enable Atom to make faster and better-informed funding decisions, said the bank.

Tom Renwick, business banking proposition manager at Atom, said: “Running a business is complex and the pandemic has increased the administrative burden on time poor business owners.

“Our partnership with Codat will address the manual and slow exchange of data, making our application process simpler and credit approval faster.”

Pete Lord, chief executive of Codat, added: “Atom will use our service to enhance their lending processes and improve the borrower experience.

“Via a single API, we’re enabling financial service organisations to integrate with a wide and growing range of accounting, banking and commerce platforms. It means banks and lenders can get a holistic financial profile of a small business in a matter of minutes rather than days.”

Both FinTechs have been awarded grants from the Banking Competition Remedies (BCR) organisation to “transform banking for small businesses”, and this deal is one of the ways that Atom is delivering against its commitments.

Atom has been active in supporting businesses through the economic impact of the pandemic, being one of a small number of banks to offer secured loans to new and existing customers through the government-backed Coronavirus Business Interruption Loan Scheme (CBILS).

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