ABN Amro introduces Gradefix: ‘risk-as-a-service’

Source: ABN Amro

Gradefix is a new service that uses transaction data to perform analyses and risk assessments for clients.

The analyses offer consumers and SMEs a comprehensive and personalised overview of their financial situation. This is useful information for themselves and for anyone with whom they want to do business.

How it works

The consumer or SME submits transaction data for analysis. Gradefix then calculates a risk score using a variety of factors, including credit and debit transactions and monthly balances. A higher score means that Gradefix considers it more probable that the client will be able to meet his or her financial obligations during the coming months, assuming that nothing in the client’s situation changes. The results are presented in a personalised report. The consumer or SME decides whether or not to share the information with third parties.

On 22 November ABN AMRO will launch a pilot with Gradefix and mortgage broker De Hypotheker. Advisers at the branches of De Hypotheker that are involved in the pilot may use Gradefix reports in their mortgage advice. The purpose of the pilot is to determine whether mapping out the client’s income and expenditure saves the client and the adviser time. It will also be used to establish whether Gradefix offers more comprehensive information about the client’s financial situation, and if so to what extent. The findings from the pilot will be used for the product’s further development.

ABN AMRO’s Head of Products & Business Development Berend Dinkla explains, ‘Consumers and businesses spend too much time gathering “proof” of their financial situation. Gradefix makes the process easier and faster. We have applied our extensive experience with automated risk models to develop a practical service for third parties: risk-as-a-service.’

Twan Cats, Commercial Director at De Hypotheker, adds, “ABN AMRO possesses a vast amount of understanding and expertise in the area of risk management. We will use this pilot to investigate whether and how far Gradefix can simplify and improve the mortgage application process. As a result, clients will be able to find out what their options are sooner.’
Payment Service Directive 2

With the introduction of Payment Service Directive 2 (PSD2), starting 2018 clients will be able to share transaction data directly with third parties. Gradefix is one of ABN AMRO’s initiatives that tie in with this development. Although Gradefix does not depend on PSD2, in the future it will potentially utilise the Account Information Services (AIS) application.

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