KPMG takes stake in credit scorer AdviceRobo
KPMG head of advisory Rob Fijneman says the partnership would “enable us to add these types of artificial intelligence (AI) based predictive behavioural models to our services for lenders,” enhancing credit risk models and lowering costs.
The partnership will also enable AdviceRobo to take advantage of KPMG’s expertise in a variety of areas including risk management, compliance and regulation, big data, and analytics.
AdviceRobo’s approach to credit risk management focuses on the insights available from the non-financial and behavioural data of would-be borrowers.
The company’s psychographic risk scoring can be used to access the creditworthiness of applicants for products including loans, mortgages, and credit cards.
The technology is used by lenders working with customers from historically underbanked communities, whose thin credit files make them poor candidates for traditional financing.
AdviceRobo CEO Diederick van Thiel estimates that there are more than four billion people around the world who fall into this category and said that technology can help financial services firms reach them.
“For instance, the software can identify vulnerable consumers who will be at risk of defaulting on loans in the future,” explains Thiel.
Founded in 2013 and headquartered in London, Amsterdam, and Paris, AdviceRobo has clients in ten countries across Europe and Latin America.
In April, AdviceRobo joined the BNP Paribas Plug and Play accelerator programme. Also this spring, the company announced a trio of new bank customers: Hungary’s OTP Group, Argenta of the Netherlands, and Banco Macro of Argentina.