3 Promising AI-based Credit Risk and Analytics platforms in Europe

By Gloria Methri

In today’s rapidly evolving financial landscape, managing credit risk has become more complex and critical than ever, especially in Europe, where regulatory demands and economic uncertainty have heightened the need for sophisticated solutions.

Traditional credit assessment methods are often insufficient to address the dynamic risks faced by lenders. This is where AI-driven solutions come into play, transforming how credit risk is analysed and managed. Leveraging vast datasets and advanced machine learning algorithms, these platforms provide deeper insights, enabling lenders to make more informed decisions and mitigate potential losses.

In this listicle, we explore three companies aiding this transformation. Each is harnessing the power of AI and offering innovative risk assessment tools designed to help lenders navigate the complexities of the European market with greater confidence.

• ACTICO

ACTICO is an AI-powered credit risk platform that uses machine learning and business rules to automate decision-making. The platform is designed to streamline decision-making processes for financial companies, especially for SME and commercial lending. It can help with credit models, flows, and predictive credit decisioning.

ACTICO’s platform includes tools for capturing and designing decision models, testing and monitoring automated decision-making and creating automated decisioning and approval workflows.

• Credit Canary

Credit Canary offers banks and lenders a platform that warns consumer lenders early on financial distress to predict repayment risks. It uses credit data and other information to help lenders identify and engage borrowers who may be at risk of missing payments. The platform combines open banking, credit, transactional, trend, and product data to forecast borrowers’ disposable income and financial behaviours.

Credit Canary then uses predictive analytics to identify borrowers at risk and send them timely reminders to help them stay on track. Lenders can use the platform to create personalized engagement strategies to reduce the likelihood of default and help borrowers meet their credit obligations.

• Finexos

Finexos combines advanced AI, behavioural analytics and real-time data to reduce risk, costs and default rates for lenders, borrowers and society. Its proprietary AI-powered risk engine utilises multi-source data, including open banking and machine learning, to help enable any credit provider to automate processes and rapidly determine a borrower’s creditworthiness with high accuracy.

The cloud-based SaaS platform also provides advanced loan book vulnerability analysis of existing lender portfolios to reduce default rates and can enable real-time affordability and vulnerability analysis.