Open Finance is a new model provided in Colombian legislation that allows people to safely share their financial information with the entities they choose. Belvo is a platform specialised in facilitating this data exchange, and thanks to the agreement with Mibanco, the entity's clients will be able to provide the current state of their finances to assess their debt capacity.
Specifically, through the Belvo platform, clients will be able to share data from their daily financial activity in digital wallets and other banking entities, in order to demonstrate their ability to acquire a credit product.
Officials from Belvo said they are excited to see how more and more financial entities in Colombia are betting on Open Finance models due to their positive impact on reducing the gap in access to financial services. They believe that the possibilities are endless, and they will see more and more inspiring examples like this in which technology is put at the service of expanding financial opportunities for citizens.
Also commenting on this partnership, representatives from Mibanco said they are convinced that technology and access to information are great enablers for financial inclusion in Colombia. This joint work fills them with satisfaction as it contributes to their objective of facilitating more and more people in the country to access the financial system, aspiring to a source of financing adjusted to their needs and thus continue writing together stories of progress for them and their families.
In June 2023, analytics software company FICO has partnered with Open Finance data and payments platform Belvo to expand credit access in Latin America.
The two companies are developing an interpretable and explainable machine learning (ML) model that generates a credit risk score based on consumer-permissioned transaction-level data. This initiative aims to increase credit access, enhance risk management for banks, and enable personalized financial experiences for customers.
The ‘Belvo Open Finance Score’ will be available in Brazil later in 2023. It leverages AI techniques, including interpretable neural networks, and uses data from various financial accounts processed securely through Belvo's Open Finance infrastructure. This score will provide an analytical tool for financial institutions to improve credit decisions, especially for those lacking a mature analytics infrastructure.
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