KapitalKontroll partners with Neonomics

The new service will handle all payments using Neonomics' Open Banking platform. It will provide efficiency and security for its clients, which include a sizable number of Norwegian municipalities and both small and major businesses nationwide.

The operating model of KapitalKontroll and the Open Banking solution from Neonomic will function together to optimise the company's operations. By giving them access to the customer's actual financial flow, Open Banking enables debt collection agencies to understand income stability and ongoing loan payments.

Fees and interest make up as much as 40% of the EUR 10.7 billion collection debt owed by Norway. However, KapitalKontroll's large clients pay only 4% in fees and interest because their main goal has been to provide a more effective operating model. Municipalities all around Norway profit from KapitalKontroll's low-fee model, and now they will be able to offer end users the option to securely and conveniently complete payments directly from their own bank accounts.

Neonomics’ previous partnerships

Neonomics has cooperated with several debt collecting agencies in the past. To supply more effective payment and financial data services through Open Banking, the company teamed up with Kredinor in June of 2022. The partnership laid the groundwork for future cooperation between the two businesses in creating financial data products that will help Kredinor's clients manage their debt collection requirements more effectively.

Worldline also collaborated with Neonomics to extend its account-to-account payments and data aggregation coverage in the Nordics. The two businesses want to connect with 3,500 banks across 22 nations in Europe. The Open Banking data and payments infrastructure of Worldline is now available to banks throughout the entire Nordic region thanks to the cooperation with Neonomics. In order to meet the needs of current customers and obtain regulatory permission prior to integration, Neonomics also expands its coverage to a number of new core European markets.

Open Banking’s impact on debt collection

Collections managers can gain a lot of knowledge about the financial background and behaviour of their past-due customers by using the potential of Open Banking. For instance, they can get in touch with customers via their chosen channels and at their most convenient times. They can reduce the time and effort they use pursuing past-due consumers while increasing their repayment rates.

However, this is only achievable with an all-in-one collections management software that offers data collection and analysis powered by machine learning (ML) and artificial intelligence (AI). Afterward, this data can be used to categorise consumers, issue customised dunning messages, and raise repayment rates. Financial institutions can leverage the accessible data to create customised dunning strategies that are more likely to prompt repayments and raise their overall recovery rate.

Debt collectors must be aware of their clients' financial situation in order to assist them in paying off their debts. Therefore, Open Banking expands the quantity of data accessible and helps debt collection agencies to more effectively collect and refinance debt.