How 1West Used Cobalt Intelligence's Secretary of State API to Improve Business Lending

The Solution: Cobalt Intelligence's Secretary of State API

1West integrated Cobalt's SOS API into their ABLE platform. This move brought several key benefits:

1. Real-time data retrieval: The API pulls business information directly from state databases.
2. Automated verification: It checks business names, addresses, and start dates automatically.
3. Seamless integration: The API works well with 1West's existing systems.
4. High accuracy: Kunal notes, "It finds it at a very high percentage of the time, more than 90 percent of the time."

Implementation

Shane, 1West's CTO, described the integration process as remarkably smooth:

"It wasn't difficult at all. It was very easy. [...] I think it took, you know, less than a week in terms of just like the core build."

Results

The integration of Cobalt's API yielded significant benefits for 1West:

1. Improved Operational Efficiency:Kunal explains: "This has freed up a ton of bandwidth for them [the processing team]." The automated checks allow 1West to handle more applications without proportionally increasing staff.
2. Enhanced Accuracy and Fraud Reduction:"Cobalt helps us verify the file data that the customer is giving us on the applications. It helps reduce fraud for our lending partners," says Kunal.
3. Better Loan Terms for Customers:Kunal provides a concrete example: "Now having more than one year in business or three years in business or five years in business. These are all major milestones across all the funders in our network. And if you can get over those thresholds, you're going to get much more competitive offers."
4. Improved Customer Experience:1West has achieved an impressive level of automation. Kunal notes, "25 percent of the customers that enter the marketplace through Abel, they never speak to anybody from our company and they self-service themselves all the way through."
5. Competitive Advantage:Shane believes they're ahead of the competition: "I think there are a lot of other marketplaces. There are a lot of, a lot of others trying to do what we've done. I think they'll eventually get to where we are, but we certainly have a big head start."

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Addressing Lender Concerns

For lenders considering partnerships with platforms like 1West, it's important to note:

1. Data Sources: 1West uses multiple reliable data sources. Kunal mentions, "We, in real time, digest the information from their credit report. From their bank statement data. We're reading their bank statements through an OCR that we use. And we've also recently signed up with Plaid. And then we're checking the SOS data through Cobalt."
2. Compliance: While not explicitly discussed in the interview, 1West's use of official SOS data through Cobalt's API likely aids in maintaining compliance across different states.
3. Underwriting Process: 1West's ABLE system uses the verified data to match applications with lender criteria. Kunal explains, "ABLE aggregates all that data, matches it up. Not just the guidelines from our funding partners, but intelligent guidance."

Conclusion

1West's integration of Cobalt Intelligence's SOS API has significantly enhanced their lending marketplace. By automating key verification processes, they've created a more efficient, accurate, and user-friendly platform for both borrowers and lenders.

As Kunal summarizes, "Able solves a lot of those issues and it's able to do it 24 hours a day, which is I think what makes the marketplace so valuable to our referral partners as well as our customers as well as our lending partners."

For alternative business lenders, 1West's success demonstrates the potential of leveraging advanced API solutions like Cobalt Intelligence's to streamline operations, improve accuracy, and enhance the overall lending experience.