AmEx Looks Into “Personality Biometrics” with Neener Analytics

American Express launches a pilot phase with the US-based FinTech Neener Analytics, which accesses borrowers’ credit scores using their social behaviour, or so-called “personality biometrics”. Their goal is to assist credit institutions through their decisioning processes, especially when dealing with subprime customers. AmEx again stresses their interest in rather “atypical” customer segments compared to their usual targets.

Neener Analytics was founded in 2014 to provide alternative methods and assess financial risks based on borrowers’ behaviour and personality as conveyed via their social media profiles. These processes help companies through their credit-granting processes when borrowers have a poor credit history or no credit history at all.

Based on this behavioural study, they can predict the borrower’s behaviour and quickly assign a credit score. With an 80% accuracy rate, this method is more reliable and helps improve marketing conversions.

Neener Analytics just became part of the Middle Eastern accelerator Nest. Field tests will soon start with help from American Express.

Comments – Behavioural analytics improving risks’ assessments

Neener Analytics specialises in scoring subprime profiles, with no credit history or with poor scores. In their assessments, roughly 66% of the Millennial customers would find themselves in this situation: they are their main targets. Behavioural analytics, scrutinising their Facebook, LinkedIn or Twitter connections, lets them address profiles once deemed inaccessible.

Their partnership with American Express –a card scheme which traditionally and purposely focuses on “prime” profiles– is then of high interest. Through this agreement, the payment giant further diversifies their range of services and may also increase their customer bases. A few years ago, AmEx started focusing on the prepaid card market, when they introduced American Express Serve for customers who could/would not open a bank account or subscribe a credit card. Since then, AmEx took a step back and sold their prepaid business, but they still keep an eye on technological innovations likely to contribute to their business evolution.