FICO, a leading provider of AI decisioning platforms and a global analytic software firm, and Belvo, the region's top platform for open finance data and payments, have established a strategic alliance to increase credit availability in the region. 

 

To increase consumer access to credit, enhance bank risk management, and enable lenders to offer their clients individualised financial experiences, the two companies are developing a machine learning model that is interpretable and explicable and will produce a customer score based on transaction-level data collected with the consent of the customer. The score is anticipated to be made accessible in Brazil later this year, according to information presented at the Febraban Tech Conference in So Paulo.

 

Based on open finance transactions from a variety of financial accounts (credit, debit, current accounts, savings, investments, etc.) that have been authorised by the customer and securely processed through Belvo's open finance infrastructure, the Belvo Open Finance Score, powered by FICO's AI Innovation and Development team using AI techniques like interpretable neural networks, will generate a credit risk score. 

 

The score will give financial organisations an analytical tool that will improve their usage of current credit agency scores and internal models by incorporating data from various sources. It can help any lenders that want to use open finance to influence client decisions for the better.

 

“The speed of change in consumers’ behavior since the pandemic is astonishing, and we have an opportunity to bring new insights to lending decisions,” said Albert Morales, Belvo’s general manager in Brazil. “Open finance data provides a much wider picture of the circumstances of people and companies. Together with FICO, we are capturing the predictive value from all this data and summarizing it in a score that will help financial institutions make more accurate risk assessments and identify creditworthy people they may be missing today.”