Traditionally, credit decisions have relied on historical records, physical documentation, and manual processes involving financial statements, bank statements, certificates, and references. Methods that have long been considered reliable are increasingly misaligned with the pace and complexity of today’s economy.

“The problem is that these processes are slow, manual, and costly,” says Roni Zacharion.

“At the same time, fraudsters know exactly how to manipulate them. And they simply don’t work for startups, freelancers, or individuals without long credit histories.”

The result is a distorted system. Some borrowers appear safe because historical data suggests they are, while in reality the risk may be higher than the models capture. Others are considered risky despite having strong financial capacity in practice. At the same time, lenders often fail to detect sophisticated fraud attempts targeting credit processes.

“This creates a structurally inefficient allocation of credit, drives up costs, and excludes individuals and businesses with real repayment capacity.”

Real-time data builds bridges

According to Kreditz, the solution is not to replace traditional credit data, but to complement it with real-time transactional and behavioural data, enabled by PSD2 and Open Banking.

“Real-time data acts as a bridge between the ‘islands’ of information that previously could not be connected. When lenders understand actual cash flows, behavioural patterns, and repayment capacity in real time, risk assessments become significantly more precise. That’s how we start closing the credit information gap”, explains Zacharion.

For lenders, this means faster decisions, more accurate risk segmentation, and the ability to reach entirely new customer groups.

For borrowers, it means fairer access to financing – based on real financial behaviour rather than incomplete historical records.

A growing data universe requires new platforms

At the same time, the amount of available financial data is expanding rapidly. Beyond bank transactions through Open Banking, new frameworks such as Open Finance and Open Data are emerging. These developments will introduce tens of thousands of additional data points that lenders may need to consider in credit decisions.

“This creates entirely new demands on technology and decision processes. Solutions must be scalable, flexible, and data-agnostic to adapt as new sources of information become available”, Zacharion says.

This is where Kreditz positions itself.

“We don’t see ourselves only as a provider solving today’s information gap. We’re building the infrastructure to continuously close it as the financial data universe expands.”

From credit risk to societal impact

The challenge is global. More than 1.4 billion adults still lack access to basic banking services, while the SME financing gap is estimated at several trillion dollars worldwide.

In Sweden, there are also clear signs that the credit market does not function optimally for all participants.

According to the European Money and Finance Forum, only around half of all companies have an active credit line with a bank. This means a significant share of established and growing businesses lack immediate access to capital. At the same time, statistics from Tillväxtverket show that the share of small and medium-sized companies that both applied for and received loans has fallen sharply over the past decade – from more than 34% in 2011 to just over 17% in 2023.

Meanwhile, credit fraud continues to place significant pressure on the financial system. Industry reports estimate that annual fraud costs reach hundreds of millions of euros, increasing costs for lenders and creating uncertainty in risk assessments.

“With better information we can build a more precise and inclusive credit system,” Zacharion concludes.

“One where risk is assessed in real time, capital flows where it should, and more businesses and individuals have the opportunity to grow. In the end, this is not only about credit decisions – it’s about building a more efficient financial ecosystem.”

3 recommendations from Roni Zacharion, founder and CEO at Kreditz

1. Complement historical data with real-time insight

Traditional credit data alone is no longer enough. Integrating real-time transactional and behavioural data into decision processes helps lenders both reduce fraud and identify creditworthy customers who would otherwise be declined.

2. Build for tomorrow’s data landscape today

Open Banking is only the beginning. Financial institutions should ensure their systems are scalable and data-agnostic so they can handle Open Finance and future data sources without rebuilding their infrastructure.

3. See the information gap as an opportunity

Better risk precision does not only reduce losses. It also improves approval rates, increases conversion, and strengthens financial inclusion. The institutions that close the information gap will gain both profitability and trust.