Worldline partners with fintech Algoan to offer next-level credit assessment solution for lenders & service providers

Credit assessment powered by Open Banking

Paris, la Défense — 04 / 05 / 2022

Worldline [Euronext: WLN], a global leader in payment services, and Algoan, a leading credit scoring provider, today announced a collaboration agreement to jointly develop a next-level credit assessment solution to help lenders and services providers make better credit decisions. This service is based on best-in-class APIs & machine learning, making use of open banking transaction data.

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Fintechs PSD2 Partnership

Within the secure and user-consent driven framework of PSD2, credit institutions, borrowers and merchants all have the opportunity to embrace a faster, fairer, data-driven credit assessment approach which has clear benefits for all parties. Worldline and Algoan are dedicated to making these opportunities readily available to the market.

Traditional credit assessment practises across Europe involve varying degrees of manual processes and assessments, which are subject to human error and cost both lender and borrower a lot of time to process a credit application. Following the fundamental changes in the financial services industry, the task of assessing potential borrowers is becoming more and more difficult with traditional assessment methods no longer meeting consumer expectations and not keeping pace with digital transformation or regulatory changes. The credit & risk assessment process has a lot to gain from PSD2 opportunities, as Open Banking and Open Finance continue to provide better and faster services to consumers and institutions.

Unleashing the power of Open Banking

The partnership will combine Worldline’s pan-European Open Banking reach and expertise in digital banking, combined with Algoan’s credit scoring expertise that uses best-in-class machine learning algorithms, therefore offering a new Open Banking-based credit-assessment tool. This will enable banks, credit institutions, lending companies and service providers to take credit scoring to the next level, resulting in more accurate scoring, access to better data and improved processing efficiency. This innovation can be valuable for many use cases, such as Personal Finance & Consumer Lending, Auto Finance & Leasing, Retail Lending & BNPL (Buy Now Pay Later), Insurance and Utility Providers.

Benefits for both lenders and borrowers

Open Banking-based credit assessment brings significant advantages to both lenders and borrowers. As the lender receives data from the bank, the data validity is ensured which will reduce the risk of fraud. Based on a more accurate assessment, applicants can be accepted who may otherwise have been declined. With access to consumer account data, based on user consent, lenders quickly get a better view of the actual financial situation of consumers and can meet the borrower’s needs without risking over-indebtedness. In addition, the lender can provide a fast, straightforward customer journey while the borrower receives a fair credit assessment and a faster time-to-yes.

At the heart of this new credit assessment tool is Worldline’s Open Banking API, which provides access to more than 3,500 banks in 19 countries across Europe. Worldline is one of the largest Open Banking providers in Europe.

Michael Steinbach, Managing Director Financial Services at Worldline: “At Worldline we look for innovative partners who share our vision and enable us to enrich and expand our open banking services. As a lead and one of the largest Open Banking providers in Europe, we are committed to unlocking the full potential of Open Banking. With Algoan, we will be able to offer our customers an end-to-end and cost-efficient white-label solution to assess credit worthiness”.

Michael Diguet, CEO at Algoan: “Open Banking credit scoring is experiencing momentum that big players should embrace. We are delighted to collaborate with a global leader Worldline and to power them with our best-in-class global credit scoring API. This new collaboration marks a further milestone in Algoan’s international growth."

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About Worldline

Worldline [Euronext: WLN] is a global leader in the payments industry and the technology partner of choice for merchants, banks and acquirers. Powered by 20,000 employees in more than 50 countries, Worldline provides its clients with sustainable, trusted and innovative solutions fostering their growth. Services offered by Worldline include instore and online commercial acquiring, highly secure payment transaction processing and numerous digital services. In 2021 Worldline generated a proforma revenue close to 4 billion euros. worldline.com

About ALGOAN

Algoan is a fintech revolutionising the credit sector by making it fairer and more responsible. Europe’s leader in credit scoring API, it provides fintech, retailers, and financial institutions with credit decisioning tools that can be embedded via a programming interface into processes for BNPL credit origination, car subscription, and even mortgage. Based on open banking (the secure sharing of credit applicant bank data), Algoan solutions allow you to cut credit risk by up to a half⁽¹⁾ , increase approved loan applications by 40%⁽²⁾, lower processing costs, and offer a seamless 100% digital pathway.
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