How can Alternative Data help reduce fraud risk

How AI Revolutionizes SMEs’ Access to Financing


In today’s fast-paced business landscape, marked by advanced technology, the role of Artificial Intelligence (AI) has become increasingly prominent. SMEs often face difficulties in accessing financing, hindered by factors such as lack of collateral or limited credit history. However, the emergence of generative Artificial Intelligence has opened new possibilities for SMEs to overcome these obstacles and obtain the funding they need.

Here’s how AI can transform the way SMEs access financing and manage their finances:

By using AI algorithms, credit institutions can assess the creditworthiness of SMEs with greater precision. This automated analysis helps determine the level of risk associated with granting credit to SMEs, enabling credit institutions to make informed decisions. This process fills gaps in SMEs’ access to financing and provides an accurate evaluation based on data-driven information, rather than traditional methods.

Efficient loan decisions: 

Harnessing the power of AI allows financial institutions to make more efficient and faster loan decisions. AI algorithms can process and evaluate data quickly, significantly reducing the time required for loan evaluations. By automating certain aspects of the loan process, credit institutions can optimize operations, resulting in faster loan approvals and disbursements. This efficiency benefits both financial institutions and SMEs, as it minimizes delays and ensures rapid access to the funds SMEs need.

Addressing challenges for SMEs: 

SMEs often struggle to secure financing due to limited collateral or credit history. However, Artificial Intelligence offers a solution by considering alternative factors in credit evaluation. By analyzing various data points, including business performance, market trends, and industry benchmarks.

By harnessing the power of generative AI, financial institutions and SMEs can collaborate to overcome funding challenges. The ability to analyze financial data, make precise loan decisions, and improve financial health can transform the landscape for SMEs, stimulating growth, innovation, and economic development. As Artificial Intelligence continues to advance, it is crucial for SMEs to adopt this transformative technology and unlock new opportunities for their businesses.

iFactor, the alternative financing platform dedicated to SMEs, utilizes alternative data for credit risk evaluation and a hybrid liquidity source solution, provided by both banks, non-bank financial institutions, and investors interested in diversifying their client portfolios.

The iFactor model consists of using the most advanced technologies in both the KYC and AML processes, validated by banks, as well as for credit risk evaluation using a wide range of alternative data extracted and processed from sources such as social media, psychometric models, digital footprint, transactional behaviors, etc.


The main benefits of the iFactor model are:

  • Helping improve business performance by empowering entrepreneurs.
  • Enhancing the quality of data and information in credit files, leading to an increase in the number of eligible companies.
  • Contributing to the reduction of fraud and default risk through automated analysis processes.

In conclusion, especially in the current economic context, entrepreneurs need to focus more on solutions that help optimize their time and increase their chances of obtaining financing, ensuring the financial health of their business and providing prospects for growth and development.

If you found this article about the role of Artificial Intelligence useful, we invite you to discover other essential articles for entrepreneurs.

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