Accurate data forms the foundation of smart lending decisions. When financial institutions, payment providers, and digital marketplaces rely on incomplete or inconsistent information, the risks multiply, leading to slow approvals, missed opportunities, and compliance challenges.
Yet, data fragmentation remains an overlooked crisis in financial services. A 2025 Economist Impact Report warns that data fragmentation is creating disruptive business lending challenges, raising funding costs, and slowing down economic growth. If the problems remain unchecked, the report estimates that fragmented data in financial services could cost the global economy up to $6.5 trillion in lost GDP by 2030.
Fragmented data makes it harder for businesses seeking loans to prove creditworthiness. Meanwhile, lenders struggle with accurate credit assessment. Payment providers and digital marketplaces face similar challenges when verifying business customers. This increases fraud risks and compliance burdens.
Fortunately, advancements in data integration are helping address these challenges. The solution lies in integrated platforms that unify and validate business information in real time. Markaaz offers a single, reliable source of business data, enabling lenders and marketplaces to operate with confidence, reduce risk, and accelerate decision-making.
Data fragmentation occurs when critical financial and identity information is stored across multiple, disconnected systems, making it difficult for lenders, payment providers, and digital marketplaces to access a single, reliable source of truth.
Key challenges caused by fragmented data include:
Fragmented data disrupts financial services across multiple industries. This complicates operations, increases risks, and adds unnecessary expenses.
When business financial records are incomplete or outdated, banks and lenders struggle to accurately address creditworthiness. This can result in delayed loan approvals, incorrect risk evaluations, and missed lending opportunities.
To prevent fraud and comply with regulations, payment providers must verify the legitimacy of their merchants. Fragmented data makes it difficult to confirm a business’s operational status, ownership, and financial history, increasing potential exposure to financial crime and reputational damage.
Marketplaces that connect buyers and sellers must ensure that all participants are legitimate and trustworthy. However, when vendor verification depends on disconnected or incomplete data sources, fraudsters can exploit inconsistencies, leading to fake businesses, fraudulent transactions, and diminished consumer trust.
Across all these sectors, fragmented data drives up operational costs, delays decision-making, and erodes confidence in business transactions. Without a reliable and integrated approach to data management, financial institutions and digital platforms risk falling behind in an increasingly data-driven economy.
The Markaaz verification platform provides advanced business verification solutions that transform how financial institutions, payment providers, and marketplaces verify business customers. By consolidating data from 542 million business records across 200+ countries, Markaaz delivers an accurate, authoritative, and continually updated view of businesses.
Markaaz integrates multiple trusted sources to create a comprehensive, single view of a business. This helps reduce lending risks by minimizing inconsistencies and inaccuracies, ensuring businesses operate with the most up-to-date information. As a result, lenders and payment providers can make faster, more informed choices.
Companies that partner with Markaaz also have access to advanced business identity, compliance, news and media data that provide compliance-ready decisions that align with global regulatory requirements. This simplifies the due diligence process and reduces the need for manual verification.
Markaaz achieves this by combining cross-referenced, multi-sourced, global datasets with a proprietary AI/ML-based match and merge algorithm to integrate and verify fragmented business data. Our platform continuously monitors and updates business records, reconciling discrepancies across sources and flagging inconsistencies in real time. By leveraging automation and machine learning, Markaaz enhances data reliability, minimizes manual intervention, and accelerates verification.
Companies that tackle data fragmentation head-on can quickly gain a competitive advantage. In today's digital and data-driven economy, integrated business verification enhances decision-making, strengthens client relationships, and positions financial institutions and marketplaces for long-term success.
With a single, continuously updated source of business data, lenders can assess risk more accurately, approve creditworthy businesses with confidence, and avoid high-risk applicants. Real-time monitoring detects anomalies early, reducing fraud exposure and ensuring compliance without unnecessary delays.
Streamlined verification also builds stronger businesses. When businesses experience fast and reliable interactions, they develop trust in their financial partners. This trust fosters long-term loyalty and helps financial institutions stand out in a crowded market.
Learn how Markaaz can eliminate data fragmentation and give your business a competitive edge. Connect with our team today.
Markaaz verifies 30% more businesses than leading providers. See what you’re missing with our free match rate test.
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