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September 2, 2024

Heron Data: Simplifying Bank Data Classification for Business Lending

Heron Data solves bank transaction classification with real-time feedback and network learning, enhancing underwriting for business loans.

As the GenZ say, I stan Heron. I remember when Jamie first reached out in 2021, he cold InMailed me a simple question: "Is categorising Bank transaction data as an input for underwriting business loans a pain point for [you]?"

It was - and Heron solved it for me on Day 1. Bank data classification is surprisingly such a pervasive problem in business lending. You'd think it would be solved for at the source, or then the aggregator...but nope. I've even been at companies that tried to build it themselves to limited degrees of success, and frankly I'm not sure why anyone would bother to attempt doing so anymore. Heron's approach makes me happy for a few reasons:

  1. It takes real time feedback at a transaction level from underwriters / analysts for mistagged line items and re-calculates outputs
  2. It learns from not only the feedback my team gives, but from the entire network of feedback provided by their clientele - so mistakes generally happen only once
  3. It reframes bank data into a really smart cash flow based P&L which makes Sr. Underwriters much more likely to trust scary un-audited bank data 😂