Credit scoring API, Algoan, has announced that its credit scoring models Credit Scoring and Payment Scoring will be available on a self servicea world first.
In this way, the company, which in France works with leading entities in the market such as Cofidis or Oney, continues to demonstrate its commitment to ensuring that access to credit is fairer and more responsible, a goal that has been maintained since birth. To do this, instead of having such access calculated based on credit bureau or socio-demographic data, which can be extremely discriminating, Algoan uses the applicant’s Open Banking data for instant risk analysis that is more efficient and accurate. This solution is starting to be used among banks, fintechs and retailers in France and Europe.
A new turnkey solution designed with fintech in mind
The arrival of BNPL (Buy Now Pay Later/Split payments) implies that many fintechs need to better manage the credit risk of this payment method, offered without an in-depth risk analysis. Likewise, said entities need to anticipate how the regulation of this method will evolve.
Algoan proposes a new self-service solution that takes these fintechs into account, since it allows them to integrate solutions of scoring credit and payment via API for immediate and autonomous use.
Simply connecting to the Algoan website gives direct access to products that can be incorporated via API during the purchase process. This technology will empower and enable instant risk analysis using Algoan algorithms.
Michael Diguet, CEO and co-founder of Algoan, states: “As part of our ambition for fairer and more responsible credit, it is vital to provide BNPL organizations and financial institutions with an easier means of integrating a Credit Scoring solution into their purchasing process. For this reason, we are convinced that open banking is the best tool to avoid defaults and protect consumers from over-indebtedness. We are giving these companies the opportunity to try our solutions for free so that more companies can benefit from it.”
This self-service offering available through the API effectively removes any borders in data processing related to credit risk analysis. Companies can use Algoan’s solutions, globally, without incurring additional implementation costs in new markets. What would have previously taken several months and a large investment to implement can now be deployed in a few weeks, and at a lower cost. This is an important innovation for the financial sector. This means that credit risk analysis will become global thanks to Open Banking and Algoan solutions.