How Blue Finance redefined the lending industry with Nordic API Gateway
There’s no doubt that lending is a significant part of banks’ revenue.
But as the newly enforced payment directive PSD2 has opened up access to financial data, more companies are able to build competitive lending services geared toward consumers and businesses across Europe.
Now every lending company has the opportunity to gain a far better understanding of their customers’ spending behaviour.
But how exactly will PSD2 change the credit scoring industry and what can be done to optimise these opportunities?
We sat down with Nicolai Dam Jensen, CEO and Country Manager at Blue Finance in Denmark, to explore how they’ve become the credit scoring front-runners with Nordic API Gateway.
A quicker process and better results
When Blue Finance decided to expand its lending platform for consumers from Finland to Denmark earlier this year, the company was fully committed to creating a future-proof credit scoring model.
To do that, Blue Finance searched the market for a partner that could provide them with automated access to categorised transaction data. According to Nicolai Dam Jensen, it was a no-brainer to team up with Nordic API Gateway:
“The most important thing for us was to find a FinTech that could deliver high-quality data, a high uptime and, of course, the best bank coverage in the market. That’s how we found Nordic API Gateway,” he says.
With access to a real-time categorisation engine, Blue Finance was able to build an accurate credit scoring model that immediately enabled them to make profitable lending decisions.
A win-win for lenders and consumers
In addition to creating a better business model for themselves, Blue Finance is able to offer faster and better services to its customers with the new credit scoring model, the CEO and Country Manager explains:
“For us, being a lending business and being responsible go hand in hand. We’re very much aware of the great responsibility we have to make sure our customers have the financial capability to pay back their loans. Instead of basing our credit scoring model on ‘old’ data, it’s a massive benefit that we can access real-time transaction data, track financial behaviour and get an accurate overview of what the customer’s financial situation actually looks like,” he says and concludes:
“Responsible lending requires quality data. That’s why I see better credit scoring solutions as a win-win for both lenders and consumers”.
Keen to explore how you can use Nordic API Gateway to optimise your credit scoring model? Reach out today and start building the lending solutions of tomorrow.