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Took advantage of the tech: A more stable company, better business deals – and more customers.
Thanks to Bisnode’s automated credit assessment, crowdfunding platform Fellow Finance could invest in the long term.
Fellow Finance connects companies looking for investments with individuals seeking loans. The service has grown considerably since its inception in 2013 and is now available in 35 countries. The company’s rapid growth led to an increase in the number of loan applications – which put considerable pressure on the company’s manual handling of each case. The processing dragged on and the platform missed out on potential customers. Furthermore, the risk of mistakes when issuing credit increased, according to the company’s CEO, Jouni Hintikka.
“Speed and reliability are incredibly important in our business. Without this you can miss out on lots of offers in a very short space of time,” he says.
The umbrella name for Bisnode’s online credit tool that’s based on several accurate valuation models and aims to optimize credit. Bisnode’s solutions can be integrated into the desired interface.
– Monitors and analyzes new and existing customers through current credit information and provides an overall picture of the credit risk.
– Contains Payment Index, which flags late payers.
– Rates the payment ability of private individuals.
– Based on the AAA credit rating system that best forecasts bankruptcies.
– Automates credit decisions and makes it possible to say yes or no to more customers with confidence as credit information is constantly being updated. This enables well-founded, better decision-making. Reduces the handling cost while creating a smoother customer experience.
– Fraud Solutions detects companies at an increased risk of bankruptcy through pattern recognition and analysis of previous credit losses.
“Gave us reliable and responsible customers”
The company identified the problems and sought help from Bisnode, which specializes in various analyses of customer data – including automated credit decisions (see fact box). With the new process, each case is handled in real time, which saves both time and money – and has led to an increase in customer numbers: “Automating loan decisions helps us keep our costs down and our commissions in check, and the automated credit rating gave us reliable and responsible borrowers,” says Hintikka.
Avoiding bad customers
With Bisnode’s solution, credit decisions can be managed using a standardized template or a bespoke solution based on the company’s own credit policy. Fellow Finance chose the latter, which also uses Bisnode’s foundation for customer and company data – which provides security both for customers and Fellow Finance itself. “It’s extremely important to the customers who invest in our service that their money isn’t lent to people with records of nonpayment,” says Hintikka.
He also sees other benefits in working with Bisnode, in particular that both companies have international ambitions: “A business concept that’s tried and tested in one country is easy to copy to another. Bisnode provides us with all the overseas credit and address information we need. Our partnership facilitates our expansion plans.”