Nordigen, a company which helps financial institutions build accurate credit reports, has received €700,000 in funding.
The capital was supplied by Seedcamp and Inventure and follows a €150,000 investment from Change Ventures, last year.
Founded in 2016, Nordigen aims to help lenders approve more creditworthy customers by improved data analysis. The Latvian company deploys analytical tools and algorithms to raw account data which helps lenders to automate the income verification and check risk factors such as spending behaviour or active liabilities. Through this, it is able to build accurate credit reports and scoring models.
This capital injection will be used to support the develop its growth and the creation of a global alternative to credit bureaus.
In a blog post from the company it said, “We believe that the world needs an alternative to traditional credit bureaus. Credit bureaus play an important role in building trust between banks and customers, but we believe they are not scalable enough.
“Only 30% of global population has any records at a credit bureau, while at least 2x more people have a bank account or a mobile wallet that contains all the information necessary to properly evaluate their financial health.â€
Last week, fellow Latvian FinTech company Mintos formed a partnership with cross-border payments company Trustly. The deal will see Trustly’s banking payments services integrate with Mintos’ alternative lending marketplace and help investors to transfer funds from bank accounts in 29 European countries.
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