Markaaz CEO on Unlocking Small Business Lending with Markaaz’s Golden Record

At Markaaz, we recognize that the key to unlocking better access to lending for small businesses lies in creating a "golden record" of truth. In the world of financial services, especially for small businesses seeking capital and banking relationships, inconsistent, redundant, or outdated information often prevents both banks and businesses from building beneficial partnerships.

Small businesses are dynamic, and their data changes rapidly. Yet, many are not fully aware of their cash flows or other key metrics. When banks rely on voluntary submissions from these businesses, they may miss out on the complete picture.

Within banks, there are typically two sets of data: one based on what the business provides, and another for compliance purposes. These datasets are often disconnected, leading to inefficiencies. Even large banks, which spend millions on data, rarely merge these datasets into a single, reliable source — a "golden record." This gap creates unnecessary friction and complications, where different departments within the same bank might have conflicting views of a business.

Legacy banks use algorithms to assess small businesses, but they tend to focus on larger companies, leaving many businesses underserved. The verification levels for these datasets are often low, and data can be outdated, with small businesses rarely asked to update their records.

At Markaaz, we’ve experienced this firsthand. In one instance, our own business credit scores went unupdated for over 250 days, highlighting the inefficiencies in the current system. This lack of updated information means that banks often base decisions on outdated or incomplete data, forcing small business owners to rely on their personal credit scores or face limited access to the capital they need.

The result is stark: 30% of small businesses are rejected for financial services simply because they can’t be verified. Banks are leaving billions in revenue on the table, and businesses are left struggling to access the financial services they need to thrive.

Even after small businesses set up accounts, many face challenges. As many as 50% of newly onboarded customers have their accounts frozen within the first month, and up to 40% of firms are eventually de-banked.

The solution, as Markaaz sees it, lies in creating that golden record — a universal, centralized database that captures all available data on a business. This includes publicly available information, self-supplied data from businesses, insights from the bank, and AI-driven projections of future performance.

By building this golden record, we aim to streamline the relationship between small businesses and financial institutions. The result will be more efficient underwriting, better business outcomes, and stronger partnerships.

As the market shifts toward more data-driven lending, Markaaz is leading discussions with media companies, credit bureaus, and other industry players. In the fast-moving world of business intelligence, those who act first will reap the rewards. At Markaaz, we’re committed to being at the forefront of this seismic change.

Talk to our team