CrediWire makes SME finance easier and a good business opportunity for banks
This idea is a part of Fintech Open Data Challenge
More about CrediWire
CrediWire collects financial information in real time on SMEs, such as bookkeeping data, POS data, transaction data. We provide the SME for FREE with a dashboard where do do financial statement analysis and benchmarking towards the industry average in real time, enabling the SME to see where can how they can improve their financial performance. The fashion retailer with a Contribution Margin of 29% can see that the industry on average has 44%, thus an optimisation potential of 15% points. This can be done on every single imaginable KPI e.g. compare rent costs, labour costs etc. with the industry average. The SME can share their data with their bank allowing better, easier and more transparent communication.
Application of (Open) data sources
CrediWire relies on a number of data sources, amongst these – industry codes and public annual reports from cvr.dk. Even though the “differentiator” in our service is real time data, the service wouldn’t be able to function without the open data sources.
We fetch industry codes to assign a industry to the SMEs using our service, this helps us allocate the bookkeeping entries according to industry (there exists differences between allocation of entries, which are industry dependent).
Having assigned an industry to a SME, is is much easier to have the computer “read” through the data both the bookkeeping and annual report data and verify the validity level. After having done a first “read through” of the data, the previous annual reports are used to “benchmark” the bookkeeping data against. If there exists large variations between previous statements and current statements, we calculate a variation score, which is assigned to the current financial year expressing a “validity level”.
Disadvantages/ shortcomings of Open Source data
Even though it is practical and “convenient” to apply the industry codes available in cvr.dk’s API, many companies are currently assigned to ”incorrect” industries, which means our service cannot rely 100% on the validity of the data from cvr.dk. To overcome this, we are developing smart and easy ways for the companies to update their industry codes.
However, the predefined structure has been a very helpful foundation to build upon.
The obvious disadvantage of annual reports are 1) they are only published annually 2) limited in information level. To cope with these short comings, we apply bookkeeping data.
*No interest in accelerator program.