Mark Fisher, Founder and Head of Product, FinexosMark Fisher, Founder and Head of Product
The reliance on current credit scores has excluded millions of potential customers due to outdated practices that focus on historic payment / repayment data. The economic uncertainty since the crash in 2008 has forced huge numbers of consumers into subprime credit due to the adverse effects on their credit scores. SMEs are struggling to access credit, particularly in the micro-SME space, due to a lack of real time credit data.

Finexos is addressing this problem with an AI-powered end-to-end lending platform called FIOLA® that works based on FCS® Financial Capability Scoring. The company’s solution enables credit providers to penetrate markets where traditional credit scores are unavailable or exclude large market segments. It measures the applicant’s ability to manage cashflow, credit and how they make decisions to calculate affordability and a probability of default.

“By collecting data from multiple sources including open banking and other sources such as Telco datawe aim to improve access to credit for millions of excluded consumers and SMEs worldwide, we are providing our clients with an entirely new approach to credit decisioning that does not require FICO based credit scores,” says Mark Fisher, the Founder and Head of Product at Finexos.

Offered as an end-to-end platform, Finexos’ solution makes it easy to collect, process, and use data to produce up to 5X more applicants. It also supports rapid decisioning and a full range of support tools that provide additional layers of protection and ongoing visibility. As a result, credit providers are supported in any market type, conditions, or location— especially where it is traditionally hard to service markets.

Recent advances in open banking has helped Finexos’ platform to make highly precise credit decisions that surpass the current traditional scoring models by at least 30 percent.
Its FIOLA® A2 Algorithm Engine is built on open architecture to enable credit providers to use the full power of open banking, finance, and accounting alongside existing in-house algorithms. The open architecture allows credit providers access to data from multiple points, which means unrivalled visibility to make better decisions. The company’s approach enables existing algorithms to be used in conjunction with its proprietary IP.

The system works in real-time, providing the most up-to-date information available to ensure the decision is accurate. Ongoing monitoring provides early warning and detection of issues that may lead to default giving providers’ time to interact with their customers and find solutions ahead of time. The platform’s ML tracks the historic and current performance to build predictive models that can effectively produce a probability of default based on cashflow, transactional and behavioral factors.

What separates Finexos is its robust and proactive approach to developing its products. It has architected the solutions based on the needs of the end-users of the credit product. The company has also ensured that both the credit provider and borrower are equally protected, and there is a compelling case for the credit provider to engage with more customers. Most importantly, Finexos has factored in upcoming changes in compliance and regulation to give customers a competitive advantage.
  • We are providing our clients with an entirely new evidence-based approach to credit decisioning that does not require FICO based credit scores

“We are future-ready to provide expert guidance and support to help you design and rapidly deploy your chosen platform across new or existing lending markets with lower cost and reduced risk,” concludes Fisher.