UK-based DirectID, which offers credit risk, risk analytics and predictive modelling services, has received a €9m minority investment from Ingka Investments.
With this equity, DirectID is planning to accelerate the launch of advanced predictive models for credit and risk, built from open banking. The company is also looking to expand its credit risk offering into new markets and accelerate the development of models for each stage of the credit life cycle, from originations through portfolio management to collections.
DirectID’s mission is to promote financial inclusion through its global risk score. Its platform, which leverages open banking data, offers advanced data to optimise credit and risk decisions in a growing number of countries.
Risk managers are supplied with a real-time dataset to drive efficiencies, optimise decisions and drive lifetime value across the credit lifecycle. The insights cover how much a customer can afford to repay, verify the customers income across all streams, details of where customers spend their money, highlight emerging financial distress before a customer defaults and more.
Through its insights, decision makers can make better assessments of risk, regardless of age, location and past credit performance.
Speaking on the funding round, DirectID CEO and founder James Varga said, “We are excited to be shaping a new global standard in credit scoring that enhances people’s lives by enabling access to products they need in an affordable way.
“Our coverage, advanced insights and predictive models provide a unique opportunity to achieve this by creating the world’s first real-time, inclusive, credit score based on open finance data.”
Earlier in the week, another credit risk Fintech company Harvesting Farmer Network raised $4m in a funding round. The FinTech company helps smallholder farmers in India to easily buy high-quality and affordable farm inputs, across financial services such as loans and insurance, as well as sell their crops to national and international customers.
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