IPF Digital reduces lending bad rates by 13% in Spain

Nordigen Insights helped IPF Digital improve credit scoring model performance which led to 10% increase in loan acceptance rates, 13% reduction in bad rates and over 30% improvement in Gini.


A major challenge in Spain has always been the limited availability of income and credit history data, which has negatively impacted the predictiveness of credit models and increased the need for manual processing of loan applications. In an attempt to minimise the impact, IPF Digital was looking for alternative data sources to fill the information gaps.


IPF Digital turned to Nordigen for predictive open banking insights. IPF Digital employed Nordigen's Transaction Categorisation, Income Insights, Loan Insights, Risk Insights and Credit Scoring solutions to generate new data points for credit models. The implementation was made using an API.


The new solution powered by Nordigen allowed IPF Digital to use customer banking data in credit scoring as well as simplify new customer screening and onboarding processes due to more automation. Nordigen helped IPF Digital improve credit scoring model performance by 30% (Gini) which led to 10% increase in loan acceptance rates and 13% reduction in bad rates.

"The Nordigen implementation was smooth. Transaction characteristics and categorisation provide strong arguments in assessing creditworthiness," says Arkadiusz Kuźmiuk, Credit Risk Manager for IPF Digital in Spain.


About IPF Digital

IPF Digital combines extensive International Personal Finance PLC (IPF) knowledge of consumer finance with opportunities provided by digital transformations to challenge the financial sector and provide fast and convenient financial solutions. IPF Digital is one of the leading providers of digital financial solutions in its markets and currently operating in Finland, Estonia, Latvia, Lithuania, Poland, Spain, Mexico and Australia. IPF Digital had 300,000 active customers in 2019.

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