Boston-based startup Numerated, which automates commercial loan generation, has acquired Fincura, Inc., a spreading automation and financial analysis fintech.

The deal, announced Tuesday, will combine Numerated’s digital loan origination system with Fincura’s optical character recognition software and artificial intelligence (AI) to automate the spreading process for banks, which is when financial information from a business is put into a standard format for evaluation.

Spreading is usually a labor-intensive process that involves using a printed document or PDF and manually entering the numbers into a spreadsheet, Numerated CEO and co-founder Dan O’Malley told Bank Automation News.

“They help automate the financial analysis of the business and basically help answer the question, ‘Can the business afford to pay this loan back,’ by looking at their financials,” O’Malley said. “What Fincura does is use technology and AI to extract all the text from a PDF, categorize it automatically.”

By using Fincura, the process for one document can be reduced from approximately 90 minutes to five, he added. That extracted data can then be pulled into Numerated’s software-as-a-service (SaaS) digital loan origination system. The two companies spent the last six months integrating their offerings, O’Malley said, and Fincura’s functionality will be available to Numerated customers starting in the first quarter of 2022.

Numerated’s clients range from smaller institutions with $80 million in assets to those as large as $200 billion, O’Malley said. Banking customers include $8 billion Banc of California, $7.5 billion Horizon Bank, and $63.1 million People’s United Bank.

Boston-based Fincura, which is cloud-based, was founded in 2017 by Cody Putre and Max Blumenthal, both former associate bankers at Silicon Valley Bank, where Blumenthal worked in commercial lending. The company has seven employees and 10 customers, O’Malley said, although he could not disclose specific banking clients.

Putre now joins Numerated as head of financial analysis products, and Blumenthal heads the company’s financial analytics strategy.

Fincura had raised a total of $5.2 million in funding over five rounds, with the last being in May 2019, according to Crunchbase. Numerated has raised $32 million over four funding rounds, with the latest raise in September 2019, Crunchbase reported.

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