Risk-management solutions company AdviceRobo has launched a new tool to help lenders live up to the requirements set out in the EU’s EU’s Revised Payment Service Directive (PSD2) and to better manage risks.
CatRobo has set out to help banks make better credit decision by using transactional data of consumers applying for a loan. It categorizes 70 per cent of transactions automatically, theoretically boosting resource efficiency, productivity and competitive power.
Another advantage, especially for Dutch banks, is that the application programming interface (API), a solution enabling two different programs to communicate, can automatically translate different data formats banks work with. Other banks across the continent will be able to get customize the software to their own specific market within a couple of weeks.
Commenting on the new tool, Diederick van Thiel, the CEO of AdviceRobo, said: “It serves the need of credit risk management to get more grip on the quality of the customer base. Also, the close cooperation with KPMG in this makes me proud. It shows the power of our cooperation to create a more financially healthy world.
PSD2 began to be implemented in 2016 and will be fully in operation by September 2019. The law regulates payment transactions for consumers and businesses. It also aims to boost competition within the European banking sector by stimulating innovations regarding payment transactions as well as offering customers better legal protection.
However, even though the law has been in works for years, Tink, the API developer, revealed in early July it that none of the bank APIs it had tested so far lived up to the standard set out by PSD2.
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