Worldline has announced a collaboration agreement to jointly develop a next-level credit assessment solution to help lenders and services providers make better credit decisions. This service is based on best-in-class APIs & ML, making use of open banking transaction data.
Within the secure and user-consent driven framework of PSD2, credit institutions, borrowers and merchants all have the opportunity to embrace a faster data-driven credit assessment approach which has clear benefits for all parties.
According to the press release, Worldline and Algoan are dedicated to making these opportunities readily available to the market.
Traditional credit assessment practises across Europe involve varying degrees of manual processes and assessments, which are subject to human error and cost both lender and borrower a lot of time to process a credit application.
Following the fundamental changes in the financial services industry, the task of assessing potential borrowers is becoming more and more difficult with traditional assessment methods no longer meeting consumer expectations and not keeping pace with digital transformation or regulatory changes. The credit & risk assessment process has a lot to gain from PSD2 opportunities, as Open Banking and Open Finance continue to provide better and faster services to consumers and institutions.
The partnership will combine Worldline’s pan-European Open Banking reach and expertise in digital banking, combined with Algoan’s credit scoring expertise that uses best-in-class machine learning algorithms, therefore offering a new Open Banking-based credit-assessment tool.
This will enable banks, credit institutions, lending companies and service providers to take credit scoring to the next level, resulting in more accurate scoring, access to better data and improved processing efficiency. This innovation can be valuable for many use cases, such as Personal Finance & Consumer Lending, Auto Finance & Leasing, Retail Lending & BNPL, Insurance and Utility Providers.
We’ve reported that Stripe announced the launch of a Partner Ecosystem program.