MiTrust and Algoan use smart-data in credit scoring

MiTrust, a trusted intermediary for sharing and filtering personal data, and Algoan, a provider of credit decision support tools, announce a partnership to create a joint "open banking intermediary" offering combining transparency, data control and credit analysis.

FACTS 

• This offering allows online service providers to access the bank account information of all potential customers without detailed access.

• After first agreeing to share their banking data with MiTrust, the user is given a preview of the result of the analysis performed by Algoan.

• He can then give his consent again to share the result with the service provider who requested it.

• The service provider can then give him immediate feedback on his request.

• In this 100% digital and frictionless process, only the results of the analysis are transmitted to the web service.

CHALLENGES 

• A paradox between the needs of service providers and the expectations of Europeans in terms of data : the use of banking data in the calculation of creditworthiness is an important issue for service providers. Therefore, "open banking" solutions have never been more important. However, Europeans may sometimes feel uncomfortable with open banking because they are increasingly concerned about the protection of their personal data, especially banking data.

• An innovative "smartdata" logic to remove the obstacles of Europeans : thanks to this collaboration, MiTrust and Algoan, with a 100% digital process for calculating creditworthiness, allow only the essential banking information of households to be returned in the calculation of creditworthiness and shared with the service provider. 

• Giving back control of data to users : this solution brings the power of bank scoring and offers users total control over their personal data, limiting the amount of information disclosed to the strict minimum.

Xavier DRILHON, President and co-founder of MiTrust states that: "Building trust on the Internet requires reliable personal data sharing and its disclosure must be selective and under the strict control of users. In a word, share less to share better."

MARKET PERSPECTIVE 

• Algoan is a French fintech operating in the financing sector. Algoan provides fintechs, merchants and financial institutions with credit decision support tools (based on open banking) that can be integrated into the BNPL, credit (automotive, real estate, ...) journey via a software interface :

  • Algoan claims that they:

  • Reduce credit risk by half, and increase loan applicant acceptance by 40%.

  • Reduce application processing costs

  • And offer a 100% digital, frictionless journey.

• For its part, MiTrust is a trusted intermediary for the sharing of personal and business data in compliance with fundamental rights and RGPD principles. The company is registered with the ACPR (administrative authority integrated into the Bank of France) as an account information service provider (PSIC):

  • Its service is already used in 3 European countries (France, Germany and the Netherlands)

  • In several industries (financial services, online gaming and betting, real estate, HR, compliance, ...)

  • The MiTrust solution is already used by the "Priority Pass'Zelok" to build a rental file in 5 minutes.

• This technological breakthrough is made possible by the DSP2. The offer proposed by MiTrust and Algoan is a revolution of the similar offer of Younited Credit, allowing since 2018 to give an answer to credit applicants in a few minutes thanks to the transmission of banking data. This new offer, gives back control to households on the analysis of the selected banking data in the analysis of creditworthiness, without friction on the underwriting path.