European lender Creditstar has achieved increased approval rates by 18.9% in Poland and 6.7% in Spain. The successful results were based on Creditstar's test data and reflect Nordigen's credit scoring capabilities. The upgraded model will help Creditstar approve more creditworthy customers.
The 19% approval rate increase was achieved as part of the lender's credit scoring model testing with the aim of determining whether the model could be further improved. The scoring tests were conducted after a successful initial project that resulted in significant GINI improvements for Creditstar in Spain and Poland.
Nordigen's machine learning-based account data analytics engine applied Creditstar's model on unseen data in order to identify new predictive behaviours. Creditstar's Data Science team then tested Nordigen's predictive model on historical data - commonly known as backtesting - in order to establish the improved model's accuracy.
The results revealed a significant increase in approval rates - an 18.9% increase in Poland and a 6.7% rate increase in Spain. An improved scoring model with higher approval rates enables a lender to approve more creditworthy customers, granting loans to those most likely to repay them.
"We were impressed with the results delivered by new Nordigen models during the backtesting procedure," says Mykola Herasymovych, Creditstar's Principal Data Scientist
Herasymovych further adds that "Nordigen's proficiency in data science applications, willingness to constantly improve their solutions, great attention to their clients and efforts they put to collaborate and fit their solutions to clients' needs make Nordigen stand out of the rest of data analytics providers. I believe these are the main factors that allowed us to reach these impressive results. I'm really looking forward to evaluate new models' performance on the live data."
With the financial service industry gradually adapting a more customer-centric focus, lenders seeking innovative technology to ensure their customer success and expand their client portfolio need to become early adopters of account data analytics technology.
"We’re beyond excited about the decisive tests results - it's gratifying to see our solution being tested by one of the industry's leading non-bank lenders. Creditstar is leveraging Nordigen's account data analytics to deliver greater value to its customers," says Roberts Bernāns, co-founder and CPO at Nordigen.
Creditstar is one of Europe's leading non-bank lenders with over 500,000 registered customer accounts across 8 countries, including Poland, Sweden, Spain, Finland, and the United Kingdom. Creditstar was founded in 2006 in Estonia, where it's still headquartered. Creditstar uses automated processes, algorithms and data analysis to make financial products easily available to a population of more than 175 million people in their target markets.