Solarisbank partners with Algoan to conquer France

French FinTech credit specialist Algoan has won the confidence of Solarisbank, a German Banking-as-a-Service platform. The aim of the partnership is twofold for Solarisbank: to integrate Algoan's Credit Scoring solutions and to strengthen its offer on the French market. Algoan will strengthen its position as a reference in the credit market.

FACTS

• As a reminder, Solarisbank is licensed and regulated by the German Federal Financial Supervisory Authority (BaFin). As such, it allows companies to offer their own banking services without the need for a licence.

• Its offerings include digital bank accounts, identification solutions, digital asset custody and lending services.

• It is on this last activity that the merger with Algoan makes sense. Solarisbank now integrates Payment Scoring and Credit Scoring solutions to optimise the scoring of its own customers.

• A multi-year contract has been signed between the two new partners

CHALLENGES

• Strengthen its positioning in France: Solarisbank opened an office in France in July 2021 with the ambition of moving away from the white label model. The platform is now reporting a successful launch in France.

• According to the two new partners, Algoan's scoring enables it to accept 40% more loan applicants than traditional scoring methods. It also allows the risk to be divided by two for the same number of accepted loan applicants.

• Preparing for the BNPL market: Solarisbank also specifies that this integration should enable it to get a head start on the evolution of BNPL regulations, which should help consumers to better face the risks of overindebtedness thanks to the mandatory evaluation of their creditworthiness.

MARKET PERSPECTIVE

• The French FinTech, specialised in credit scoring, has gradually established itself as a relevant observer of the French financial market and as a responsible reference on credit issues.

• Last September, Algoan announced its ambition to make the BNPL more responsible. The FinTech presented its algorithmic solution for automatic credit analysis, now integrated by Solarisbank but already used by other Algoan clients such as Pledg, Cofidis, Oney, Carrefour Banque, Floa or Alma for example.