Channel adopts AI driven SME risk decisioning

By Edlyn Cardoza

Channel Digital Holdings (Channel) has announced a global strategic partnership with AdviceRobo to accelerate the use of Artificial Intelligence (AI) within its decision-making engine to support the capital needs of SMEs.

Channel operates a UK-based asset manager, authorised and regulated by the FCA. Over the past 15 years, it has managed more than $20 billion of credit assets, including loans, working capital facilities, and securities, and is increasingly focusing on FinTech lending.

Four months ago, Channel launched its new FinTech business, which aims to break down barriers to SMEs accessing loans through rapid, technology-powered decisioning. It has now launched AI-driven risk decisioning for SMEs in selected markets.

Channel’s partnership with AdviceRobo will draw on machine learning capabilities and alternative data sources, facilitating rapid, AI-driven risk decisioning and automated portfolio management. The combination of Channel’s proprietary risk decision engine analytics and AdviceRobo’s alternative data and AI will facilitate rapid, transparent credit decisioning for SMEs and reduced risk profiles for investors.

Ion Fratiloiu, Channel’s Chief Commercial Officer, said: “Our partnership with AdviceRobo is an exciting breakthrough for Channel, enhancing our data-driven decision-making capabilities. This is the latest in a series of significant leaps in innovation for the business and we are very excited to combine our strengths to further disrupt the SME lending space.”

Walter Gontarek, CEO of Channel, added: “Innovation is at the forefront of our business proposition, and we are delighted to have extended our relationship with AdviceRobo, especially given its strength in alternative data and AI-driven decisioning. Technology is a vital differentiator in SME lending and our aim is to continue pushing the boundaries to drive speed, transparency and efficiency across business-lending processes.”

Diederick Van Thiel, CEO of AdviceRobo, said: “As a business, we are passionate about harnessing the power of AI to help accelerate the growth of small businesses and we are very excited to advance our ambitions with Channel. They share our vision for how advanced tech and data will result in better decision making and greater innovation to accelerate access to finance in these unprecedented times.”