Instantor Insight uses machine learning to assess credit risks

Source: Instantor

Today Instantor, the Swedish fintech company making financial decisions easy, announces Insight.

A new product that will transform the way financial organisations assess risk for loan applicants. By using robust machine learning, Insight analyses more than 70 predictive features and insightful patterns in historical banking, and can be used to make better risk and opportunity decisions. Instead of having a risk team spending months testing risk models, Insight´s intelligent features will build the most optimal risk model using the client's own data and can be up and running within a week. This is the first advanced plug and play insights product from the company targeting financial organisations.

Simon Edström, CEO of Instantor, comments:
“With the new legislation, PSD2, this is a great way to extract more value for our customers. The big challenge doesn't lie in accessing data any longer but in the ability to use and understand the data to stay competitive. We are proud to launch Insight as the first step in our new product offering; we are focusing more on advanced analytics products to make sure our clients continue to remain ahead of the game.”

As well as validating ID, Instantor´s Insight identifies often overlooked circumstances that significantly affect risk levels. As a result, this enables faster and more precise scoring models.
User tests show that Instantor’s Insight product can improve GINI significantly, up to 14 p.p. for new customers and 6 p.p. for a recurrent customer, boosting profits and reducing credit losses with 25 percent.

Simon Edström, CEO of Instantor, continues:
“What is unique about our model is the ability to understand what different transactions mean. E.g., what does a withdrawal of cash from ATMs late at night mean, or if a person frequently gambles does it say they are more likely to default on a loan? With our customers we've reviewed millions of applications and together developed Insights to address their unique challenges and formulate how to manage their customers best using machine learning. We can experiment and build different data models, so our clients don't have to.”

About Insight:
By using robust machine learning, Insight analyses more than 70 predictive features and insightful patterns in historical banking, and can be used to make better risk and opportunity decisions. Insight´s intelligent features will build the most optimal risk model using a client's own data and can be up and running within a week. As a result, this enables clients to grant more secure credits, deny bad ones, and optimize net lending. User tests show that Instantor’s Insight product can improve GINI significantly, up to 14 p.p. for new customers and 6 p.p. for a recurrent customer, boosting profits and reducing credit losses with 25 percent.

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