Advisory is designed to improve how banks and credit institutions perform credit decisions with live categorised transactional data. As stated by the company, the new product reportedly uses advanced artificial intelligence (AI) to analyse banking transactional data, which is accessed via the Powens platform. The end goal is to build more accurate financial profiles that improve the credit decisioning process.
Through Powens’ proprietary AI-powered engine, a borrower’s last three months of transactional data is categorised in granular detail to form a more complete picture around salary, expenses (including rent), loan repayments, and disposable income. The company seeks to automate cleaning and categorising financial data to accelerate credit decision-making.
According to Powens, these are the key benefits brought by Advisory.
Improve credit scoring: automating data categorisation reportedly provides better data for making better credit decisions and supposedly frees up internal resources to stay focused on growing core business.
Reduce risk and fraud: gaining access to accurate transactional data can both improve credit scoring models and allow banks and credit unions to reportedly assess risk and minimise the potential for fraud better.
Generate more revenue: with a more detailed view of a borrower’s financial situation, it can become possible to increase credit approval rates, which may lead to revenue growth.
Improve the borrower experience: if borrowers can prove their creditworthiness quicker, the application processing and approval time could be reduced.
The press release states that financial instutions are seeking for ways to improve the decision-making process to make decisions related to credit, financing, and payment processing. Open Banking reportedly allowed this to happen due to continued disruption and innovation. According to Powens, banks and credit institutions no longer need to manually retrieve data from checking account statements and bank receipts. Open Banking solutions that comply with PSD2 allow financial services providers to access a borrower’s last three months of transaction data; due to this, financial institutions could offer both consumers and businesses an improved user experience.
In the recently launched Open Banking and Open Finance report, Powens’ CEO Bertrand Jeannet talked about the journey from Open Banking to Open Data and what the future can bring. To read the whole article and find out more about Powens, we encourage you to download the report.
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