Gabriele Sabato, co-founder and CEO of Wiserfunding

Professor Edward Altman, the founder of the Z-score method for creditworthiness, has launched a new credit assessment system Wiserfunding in order to assist lenders asses the credit-worthiness of SMEs.

The new system facilitates the allocation of funds to traditional and alternative lenders, thus helping them build their assets and reduce the cost of customer acquisition. Wiserfunding has been built on Z-score’s model and uses AI in order to asses intangible factors. It is, therefore, expected to mitigate credit risk and generate credibility through mature risk management.

The launch comes after the £775m Banking Competition Remedies fund.

Gabriele Sabato, co-founder and CEO of Wiserfunding, commented: “With Brexit preventing many traditional lenders from making investment decisions, and the Banking Competition Remedies fund releasing £775m to increase competition in SME lending, the UK urgently needs a method for more efficiently allocating funding to growing businesses. Improved credit risk analysis enables quicker and more accurate funding decisions, ensuring that funding goes to the right UK SMEs. This will reduce the risk of defaults, ensure sustainable earnings for lenders and ultimately, make the UK economy more efficient.”

Wiserfunding was founded by Professor Edward Altman and Dr. Gabriele Sabato to assess the credit risk of small and medium-sized enterprises (SMEs). Wiserfunding uses past financial history and a range of publicly available structured and unstructured data to assess the creditworthiness of SMEs across Europe. This empowers businesses to obtain finance and lenders and insurers to assess the risk of business applicants by providing more accurate data to make better decisions quicker than ever before

by Megha Bhattacharya
Market Analyst at IBS Intelligence