Sharper credit assessments with Open Banking dramatically reduce credit losses.
Through a collaboration with the fintech company Kreditz, Collector has been able to significantly lower its credit losses. By using Kreditz’s insights and solutions, Collector can analyze real bank transactions from the borrower’s account, which provides a much stronger basis for credit decisions than traditional methods.
Patrik Hansson, General Manager at Collector, explains that Open Banking data makes the credit process both safer and more accurate: instead of relying on historical credit bureau information or customer-reported details, Collector can validate income, expenses, and affordability using up-to-date financial data. This is especially valuable since it isn’t always easy for customers to state costs correctly, such as housing expenses, in an application.
The result is better decision-making, improved risk control, and a more efficient, automated lending process that benefits both the lender and the customer.
