Worldline Partners with Algoan to Deliver Credit Reporting Solution
By Leandra Monteiro
Worldline, a world leader in payment services, and Algoan, a credit reporting provider, announced a collaboration agreement to jointly develop a next-level credit reporting solution to help lenders and service providers make better credit decisions. credit. This service is based on APIs and machine learning, using open banking transaction data.
Within PSD2’s secure, user-consent-driven framework, lenders, borrowers, and merchants all have the opportunity to adopt a faster, fairer, and data-driven approach to credit reporting. , which has clear benefits for all parties. Worldline and Algoan are committed to making these opportunities easily accessible in the market.
Traditional credit reporting practices in Europe involve varying degrees of manual processes and assessments, which are prone to human error and cost the lender and borrower a significant amount of time to process a credit application. Following the profound changes in the financial services sector, the task of assessing potential borrowers is becoming increasingly difficult with traditional assessment methods no longer meeting consumer expectations and not adapting to digital transformation or regulatory developments. The credit and risk assessment process has much to gain from PSD2 opportunities as Open Banking and Open Finance continue to deliver better and faster services to consumers and institutions.
Unleash the Power of Open Banking
The partnership will combine Open Banking’s pan-European reach and Worldline’s expertise in digital banking, combined with Algoan’s credit rating expertise that uses best-in-class machine learning algorithms, providing a new credit assessment tool based on Open Banking. This will allow banks, credit institutions, loan companies and service providers to take credit scoring to the next level, resulting in more accurate scoring, access to better data and efficiency. improved treatment. This innovation can be useful for many use cases, such as personal finance and consumer lending, auto finance and leasing, retail and BNPL (Buy Now Pay Later) lending, insurance and suppliers. of public services.
Benefits for lenders and borrowers
Open Banking-based credit scoring brings significant benefits to lenders and borrowers. As the lender receives data from the bank, the validity of the data is ensured, which will reduce the risk of fraud. Based on a more accurate assessment, applicants may be accepted where they would otherwise have been refused. With access to consumer account data, based on user consent, lenders quickly gain insight into consumers’ true financial situation and can meet borrower needs without risking over-indebtedness. Additionally, the lender can provide a fast and simple customer journey while the borrower receives a fair credit score and faster response time.
At the heart of this new credit assessment tool is Worldline’s Open Banking API, which provides access to more than 3,500 banks in 19 countries across Europe. Worldline is one of the largest Open Banking providers in Europe.
Michael Steinbach, Managing Director Financial Services at Worldline said: “At Worldline, we are looking for innovative partners who share our vision and allow us to enrich and extend our open banking services. As a leader in payment services and one of the largest Open Banking providers in Europe, we are committed to unlocking the full potential of Open Banking. Together with Algoan, we will be able to offer our customers an end-to-end, fast and cost-effective white label solution for assessing creditworthiness.”
Michael Diguet, CEO of Algoan said: “Open Banking Credit Rating is gaining momentum that big players should embrace. We are excited to partner with a global leader like Worldline and power them with our best global credit scoring API. This new collaboration marks a new stage in the international growth of Algoan. We look forward to revolutionizing the credit industry together by leveraging Worldline’s Open Banking capabilities.
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