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Simply assess customers better: How banks can prevent payment defaults at an early stage (2/2)
The personal conversation with one’s own bank advisor has become a rarity, as online and app banking is simply more convenient for many consumers. Statista has determined that 65 percent of all people in Germany have already used internet banking in the past year. However, the lack of contact also increases the risk of default due to fraudulent activities. These include creditworthiness fraud and identity theft, e-mail and website phishing and the establishment of false companies. With the Financial Lifecycle Platform of fintech axytos, potential borrowers can be better assessed and fraud attempts can be reliably detected and prevented. In the second part of the interview with banking expert and atriga Senior Key Account Manager Michael Fait, we would like to find out, how axytos deals with existing supplier contracts.
What about existing contracts, for example with credit agencies?
The bank can also use the axytos API service to connect providers of external data sources with which the financial institution already has a contractual relationship itself. Michael Fait explains: “axytos does not interfere in existing, sometimes long-standing contracts. The bank then simply uses its existing data service providers via the axytos platform, but considerably expands its audit horizon and thus the audit quality. It is generally known that the multi-agency strategy in particular ensures that much more selective decisions are possible in the end. In addition, the bank can define individual audit strategies at any time, for example, a cost-saving procedure for low risks or risk-averse audits for high risks.
atriga Senior Key Account Manager Michael Fait: “axytos does not interfere with existing contracts, some of which have been in place for many years. The bank then simply uses its existing data service providers via the axytos platform, but expands its audit horizon and thus the audit quality considerably.”
Data as the gold of the digital age
This is another area where Fait knows very specific questions from his discussions with banks, to which he does not want to answer with the usual data mining and Big Data phrases. The fact is that the data from the legacy systems at many banks is often not available for application review processes or cannot be used from a data technology perspective. However, reliable decisions in real time are only possible if correspondingly meaningful data and reliable forecasts about the customer are available. Fait explains: “The axytos platform makes the data already available to banks usable, including checking and comparing it with data supplied by axytos. Banks can then use this data to develop their own risk assessment features.”
Banks can use the axytos API to obtain information from over 70 external national and international data providers of their choice via a single interface.
