This week AdviceRobo, launched its Seedrs crowdfunding campaign. AdviceRobo is a top 100 European Fintech award winner and a leader in innovative credit scoring, advanced analytics and robo-advice solutions for consumer and small business loans.
Applications are currently with credit card providers, tier 2 banks and online retailers across the UK, Benelux and Spain.
More than ever financial service providers are faced with new, unexpected and possibly high risks. Mark Carney, the Bank of England Governor told an audience in Nottingham recently that he is willing to tolerate an inflation overshoot above the Bank’s 2% target. In addition, the Financial Times also calculated that the British government may have to pay up to £18 billion to the EU to exit the EU.
This will inevitably lead to increased costs for the British population. With 39% of Britons already living on the edge of their mortgage payments this will lead to a high financial risk for families. According to some studies families may be looking at an £500 to £1,000 extra expenses a month.
But also across other European countries are 119 million people (23%) living in daily financial stress. Also millions of new companies enter the European markets every year. They are all looking for capital to grow their businesses.
Financial service providers, online retailers, telcom operators and utility providers will therefore have to design structural better ways to onboard the good risk profiles and to predict and manage risk in their portfolio. New IFRS-9 accounting standards coming up will even force them to do so.
New big data FinTech solutions might provide some support. AdviceRobo developed a platform that delivers Innovative Psychographic Credit Scoring for onboarding the good risk profiles among customer segments with little financial history.
Also, the platform delivers Early Risk Warnings for default, bad debt and churn to support mitigation of financial company risks. “We make use of the data explosion and apply new technologies such as Machine Learning and deep neural nets to predict risk at an individual customer level.’ says Diederick van Thiel, CEO of AdviceRobo,. ‘This will enable companies across sectors to contact the customers in time and mitigate their financial risks.
To grow its presence across the UK, the AdviceRobo company kicked off a crowd funding at Seedrs.