Codat launches advisory intelligence platform for banks

Codat has launched an advisory intelligence platform for commercial and business banks, with BMO among the first to adopt the offering.

The London- and New York-based fintech is repositioning itself after years spent building data connections between financial institutions and business customers. The new platform is designed to help banks use real-time financial data and artificial intelligence in client advisory work.

Since its founding in 2017, Codat has built a library of 350,000 business data connections. Its backers include JPMorgan, PayPal, Amex, Plaid and Shopify.

The launch reflects a broader shift in commercial banking, as lenders look to combine access to off-bank financial data with analysis that relationship managers can use in client conversations. Codat argues that banks often struggle both to gain a full view of customers' financial activity and to turn fragmented information into useful insight.

Industry data cited by Codat suggests a large share of corporate information remains unused. IDC found that 68% of enterprise data still goes untapped, while a Bank Director survey found that 70% of banks with more than USD $10 billion in assets have invested in data analytics platforms in the past 18 months.

Separate research by Codat and Attest points to changing customer demand. According to the survey, 85% of US mid-market businesses would choose a bank that uses advanced data and AI to deliver more personalised services over one that does not.

Product suite

The new range includes three products aimed at different parts of commercial banking. Spend Insights focuses on accounts payable visibility and supplier intelligence. Working Capital Insights is intended to help treasury teams assess a client's financial position. FX Insights targets cross-border activity, payment flows and currency exposure.

BMO is using Spend Insights in middle-market advisory conversations. Under the agreement, BMO treasury consultants will use spend and supplier analysis to support discussions around commercial card programmes and broader treasury and payments needs.

BMO is one of the largest banks in North America, with total assets of USD $1.5 trillion. It serves about 13 million clients across Canada, the United States and selected international markets.

Joey Rault, Chief Revenue Officer at Codat, is leading the company's push into the advisory intelligence market. Before joining Codat, he spent seven years at Square, where he led enterprise sales and built a business line that generated more than USD $40 million in annual recurring revenue.

Rault described the launch as a shift from providing access to business data to helping banks act on it. "When Codat was founded, we set out to make business data accessible," he said. "Today, we're taking the next step: making it actionable. Banks are realising that winning in commercial banking means anticipating client needs, rather than just reacting to them. Advisory intelligence is the future of commercial banking, and we're proud to be leading the charge."

BMO agreement

The collaboration with BMO offers an early indication of how the software may be used in practice. The bank will apply the insights in a commercial card advisory setting, including identifying suppliers that accept card payments and tailoring recommendations to clients.

The approach is intended to improve the quality and consistency of conversations with middle-market businesses. It also reflects a wider effort by banks to use internal and external data to support revenue-generating discussions, rather than relying solely on historical account activity.

Rose Grande, who leads North American Corporate Card Product and Programmes at BMO, said the bank sees a role for analytics and AI in client discussions. "Our business clients expect insight-driven guidance that supports their growth and operational priorities. Through our collaboration with Codat, we're able to bring advanced analytics and AI-powered insights into middle market conversations, strengthening our advisory approach and helping us deliver greater value to clients as their businesses grow."

Codat said the market for this type of banking software is still emerging, though rivals are expected to enter the sector. Rault said banks often still lack a full picture of their customers' finances.

"Banks today don't always have the full picture when it comes to their business customers. Our collaboration with BMO demonstrates exactly what's possible when institutions embrace advisory intelligence: faster time to value, stronger relationships, and a genuine competitive edge," said Rault.