Open accounting, by integrating the accounting system of companies under a single platform, is an opportunity for financial entities to have a source of current and reliable data when it comes to delivering loans to companies, increasing security after the operation .
But what exactly is Open Accounting?
It is a model that entails sharing an organization’s financial data with companies in the financial sector. This is done through a centralized platform and structured data.
These platforms obtain data from electronic accounting systems, which constitute an expanding market, with a compound annual growth rate (CAGR) of 8.3% for the period 2020-2027. Without a doubt, an example of the financial sector’s technological boom.
And it is because of these tools that organizations associated with the banking and credit sectors can now rely on open accounting platforms, strengthening their operations and lowering the risk of fraud and non-payment.
Open accounting benefits from electronic accounting systems
• The information of the businesses that come to request a financial product is ready for the credit entities to consult immediately, which is critical so that the entities can make an accurate decision about granting or not granting credit, and under what conditions.
• It enables financial entities to use public data about their clients’ accounting to improve and market their products
• It facilitates the evaluation of credit risk, or the possibility of defaults.
All of the above is possible because the business environment’s accounting system has gone digital. Thus, by centralizing company data, financial organizations can gain access to current information, allowing them to have a more precise understanding of their clients’ economic behavior.
CRISKCO API : a vital tool for the banking and credit industries
Now that we’ve established what open accounting entails, how can financial institutions benefit from it?
The solution is an API like CRiskCo’s, which uses data from the all of the leading accounting systems and guarantees the accuracy of the information.
Its operation is straightforward:
• After a company submits its credit application, the CRiskCo API creates a risk analysis based on the accounting system’s data using artificial intelligence.
• Finally, the borrower receives said report, which contains the most relevant tax information, so that he can make the best and safest credit decision.
CRiskCo provides the financial environment with an API capable of increasing credit operations security, facilitating credit risk analysis, and delivering accurate models. As a result, banks and credit institutions can raise their standards when evaluating loan applications.
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