The Creditinfo Chronicle
How to manage risk in a crisis
With the stock markets falling and unemployment increasing as a likely outcome of the current virus-led situation, it is important for credit providers to start thinking about management of their portfolios. List of areas to review ranges from collections management, payment holidays to anti-fraud policies. The immediate focus should be on C.A.L.M (Cut-off Analysis and Limit Management). This article provides initial guidelines for those wanting to STAY C.A.L.M.
Íslandsbanki launches new self-service affordability calculator and loan application system
PRESS RELEASE
Íslandsbanki – one of Iceland’s three largest banks – launches new self-service affordability calculator and loan application system developed in collaboration with Creditinfo.
Íslandsbanki is a leader in financial services in Iceland. A universal bank with roots tracing back to 1875. The Bank offers comprehensive financial services to households, corporations, and professional investors in Iceland. It has a strong market share across all domestic franchise areas (Retail Banking, Corporate Banking, Capital Markets, and Wealth Management) and a 25% – 50% market share across all local industry segments.
With a team of 800 employees and a vision of being #1 for service, Íslandsbanki prides itself on being ranked first among banks in the Icelandic Customer Satisfaction Index for six out of seven years. The Bank was voted ‘Best Bank in Iceland’ by Euromoney four years in a row (2013- 2016) by the anker (2014, 2016 & 2017) and ‘Best Investment Bank in Iceland’ by Euromoney (2014).
The product
Íslandsbanki customers can now apply for a mortgage, complete the affordability calculations and application process online, and get results from the affordability calculations in real-time. If followed up with a loan application, they also get confirmation within the day. This very same process would take up to two to three weeks before.
The affordability calculator works for multiple loan types (mortgage, car leasing, and other consumer lending). There is also a new feature for up to three unrelated individuals to apply for a mortgage together. This feature will make it easier for friends, unmarried/unregistered couples, parents, and their children to buy together and thus serves to simplify the buying process for first time buyers.
Creditinfo’s role in the process has been to develop the affordability calculations in collaboration with Íslandsbanki. The Bank connects to Creditinfo’s API but developed the front-end and user interface themselves. Creditinfo data sources used in the calculations can be seen below:
“This is an important step in our strategic partnership with Íslandsbanki. The implementation has been very successful, and we look forward to contributing to their clients improved journey,” says Dagný Dögg Franklínsdóttir, Head of Sales at Creditinfo Iceland.
“This process has so far been more or less manual so there has been a lot of waiting around for our customers, but now we have a fully automatic payment assessment,” says Linda Lyngmo, Project manager of digital solutions at Íslandsbanki. “Now everyone can apply for a credit assessment for mortgages, car loans or other loans on the Íslandsbanki website and get an answer about their payment capacity right away.”
Mobile Lending: Non-traditional data in credit decision making
Retail lending in Kenya has taken a unique path. It has skipped some stages typical for developed markets and climbed to heights that can be admired and envied. Ironically, this happened not due to economical advantages but rather due to certain historical deficiencies.
Creditinfo Jamaica appoints John Matthew Sinclair as CEO
PRESS RELEASE
National Commercial Bank of Jamaica veteran joins Creditinfo team to help credit providers embrace digitalisation and boost financial inclusion.
How alternative data can help unbanked population acquire traditional loans
By Dmitry Borodin, Head of Risk Analytics at Creditinfo Group
In societies of Digital Nomads, working from home Millennials, global migrations and emerging economies, lenders are often facing a shortage of relevant data to score and assess a big pool of population. Consequently, lenders are often unable to make decisions on so called ‘thin files’ due to a lack data. Thin file customers then remain excluded from formal finance.
Creditinfo and PT PEFINDO Biro Kredit Sign Long-Term Strategic Partnership Agreement in Indonesia
PRESS RELEASE
Creditinfo Group, the leading global credit information and fintech services provider has today announced that it has signed a long-term strategic partnership agreement with PT PEFINDO Biro Kredit (PBK) to further support financial and non-financial institutions in Indonesia. Using Creditinfo’s knowledge and experience, PBK will enhance its consultancy and analytical services to provide customers with additional value-added risk management solutions and support.
The financial inclusion conundrum in developed economies
By Stefano Stoppani – CEO, Creditinfo Group
Last month, consumer champions Which? revealed the findings of research into the state of the UK banking sector – with a somewhat bleak conclusion. The top line of the study? A third of all UK bank and building society branches have closed over the last four and half years. Of those that remain on our high streets, opening times have narrowed.
Coremetrix Psychometric Profiles: Do you really know your customer?
By David Kaufer (Senior research psychologist at Coremetrix)
I used to live in a small town where everyone knew everyone. I don’t live there anymore – not even in the same country or continent. I grew up and moved on, but deep inside I still have a sweet spot for this town because of the memories; memories of the countryside, my primary school, my family, neighbours, playmates, teachers and local merchants.
The key to success (my humble opinion): Any lessons from credit-vibrant Iceland to small population countries?
By Reynir Finndal Grétarsson – Founder, Creditinfo Group
In 2010 I decided to go back to University and learn Anthropology. This is the discipline that deals with human behavior in wide and holistic manner. Why do humans behave as they do? After graduating in 2014 with a bachelor’s degree, my understanding of the complex organism that is the modern human being increased just a little bit. The most important thing I learnt was that different behavior of different groups of people could be explained by what we call culture.
Creditinfo And Artificial Intelligence (AI)
Artificial Intelligence (AI) is currently growing at a fast rate, and is becoming a hot subject in the industry globally. Individuals and organizations alike, are now moving towards that direction in order to increase efficiency and maximize on profits while lowering costs for themselves and their businesses.
Afghan Credit Guarantee Foundation partner on first-of-its-kind Credit Risk Scorecard for Afghan SMEs
PRESS RELEASE
LONDON, UK, 26th June 2019 – Creditinfo Group, the leading global credit information and fintech services provider, today announced that it has entered into a strategic partnership with ACGF – Afghan Credit Guarantee Foundation to develop a Credit Risk Scorecard aimed at small-to-medium enterprises (SMEs) in Afghanistan. As the first SME credit scorecard to be developed for the Afghan market, the joint solution will not only increase profitable lending to the market, but also provide a host of societal benefits such as great wealth generation and increased employment, as a result of opening up affordable, formal credit to SMEs in the country.
Credit Bureau: Towards a new generation of services
Translated version of the interview with Sidimohamed Abouchikhi, CEO of Creditinfo Morocco.
Image credit: Finance News.
Interview by Momar Diao
Assessing credit risk of SME’s and how credit scoring can transform SME’s
Paul Randall was recently at the Kafalah SME Financing Conference in Riyadh, Saudi Arabia, and he tackled these 2 questions during the panel discussion.
What are the specific challenges of assessing credit risk of SMEs as compared to larger firms and how can fintech can help lenders address those?
Paul Randall at the Kafalah SME Financing Conference 2019
Kafalah SME Financing Conference was held in Riyadh, Saudi Arabia where they discussed current financing for SME’s in Saudi Arabia,how to build relationships between private and public FIs, government agencies and legislative bodies that support financing, current and future finance opportunities for specific business sectors and how to increase awareness of the most current international practices for financing SMEs.
Creditinfo expands regionally, stores information in Jamaica
In his interview with The Gleaner, CEO of Creditinfo Jamaica – Craig Stephen highlighted on the regional success and the goal to venture into other caribbean markets in the near future.
