July 7, 2021 – Leading Scandinavian credit market company Entercard is partnering with European open banking company Nordigen to improve their credit assessment and scoring models through more detailed data insights. The partnership is expected to significantly increase the accuracy of the existing credit scoring models by adding new data points that capture customer behaviours related to spending. By enabling Entercard to gain additional insights from internal consumer spending data, Nordigen will help the lender to make better lending decisions.
“Entercard is focused on being a responsible lender and improving the financial wellbeing of our customers. Partnering with Nordigen enables us to leverage our data to gain a much better understanding of our customer behaviour and their financial needs. More in-depth analysis of several millions of our monthly card transactions by our customers will also help us in making even better credit decisions,” says Entercard Chief Credit Officer Syed Moonis.
The disruptions caused by the global pandemic and the changes in spending behaviours have made it difficult to rely solely on traditional risk assessment methods. By partnering with Nordigen, Entercard will be able to look deeper into how their customers are using Entercard products and adjust scoring policies accordingly. This will, in turn, improve credit decisions.
“Our payment data insights provide additional clarity at a time when lenders can no longer rely on just credit bureau data. Our technology combined with our expert team can quickly identify risk-critical behaviours, which is necessary for making smart lending decisions,” says Nordigen CEO and Co-founder Rolands Mesters.
Entercard will use Nordigen’s data insights to improve lending services for their customers in Norway, Sweden and Denmark. Nordigen’s premium services will provide detailed analysis of transaction data and insights that will enable Entercard to better evaluate the financial status of both current and prospective card customers.
Entercard is one of Scandinavia’s leading credit market companies with over two million customers in three markets. The company’s two owners, Barclays Principal Investments Limited and Swedbank, provide access to a global and unique expertise within lending. The goal is to make customers’ everyday lives easier by offering them smart and responsible payment and financing solutions. Entercard is present in Norway, Sweden and Denmark and has 450 dedicated employees.
Nordigen is a freemium open banking platform that provides free access to open banking data and premium data insights. Nordigen’s free API connects to more than 1,000 banks in Europe and serves fintech companies and developers in 31 European countries, including the UK. Nordigen is a licensed Account Information Service Provider (AISP), regulated by the The Financial and Capital Market Commission of Latvia and authorised in 31 European countries.