The impact of using alternative data sources

Many entrepreneurs face challenges in growing their businesses due to a lack of financial education. Often, they focus too much on the operational and administrative aspects of their business, neglecting the financial and strategic aspects essential for expanding their activities.

Challenges for Financial Institutions in Credit Risk Assessment

As entrepreneurs seek to grow their businesses and access additional financing, banks face significant challenges in assessing the credit risk associated with these companies. It is essential for financial institutions to deeply understand how each business is run, their growth plans, and their ability to repay a loan.

This need to better understand entrepreneurs’ businesses is amplified by the fact that traditional credit risk assessment models often rely on historical financial data and indicators, which may be insufficient in making precise and relevant predictions.

Contribution of iFactor Pure Analytics in Credit Risk Assessment

iFactor Pure Analytics relies on advanced data analysis and cutting-edge technologies to provide banks and financial institutions with detailed and relevant information about a business’s current performance and growth potential.

In the analysis process, iFactor Pure Analytics uses alternative data sources such as social networks, psychometric profiling, digital footprint, and transactional behavior to streamline the lending process, reduce fraud and default risks, and optimize financial analysis.

Transforming the Credit Evaluation Process

With the help of iFactor Pure Analytics, financial institutions can more accurately identify financing opportunities and make informed decisions regarding loan approvals.

By using the iFactor Pure Analytics Credit Intelligence Service, Financial Institutions can obtain valuable information about clients’ business profiles, thus simplifying the analysis process and improving risk management, resulting in increased conversion rates and client portfolios for business loans, reduced analysis costs and response time, as well as more advanced identification of potential default and fraud.