Algoan’s credit decisioning solutions — Now available for Professionals!
From consumers to professionals: Why we took the leap
Since 2018, Algoan has been supporting major European financial institutions in their credit decision processes with a suite of scoring solutions powered by Open Banking data.
While 2024 marks a real turning point in the adoption of Open Banking for consumer credit — driven by the rapid acceleration of use cases, the maturity of PSD2, the proven effectiveness of our solutions, and an increasingly favorable regulatory environment (notably with the new Consumer Credit Directive) — this year is also the one where we chose to extend our offering to the professional segment.
Why? Quite simply to meet strong demand from financial institutions looking for scoring solutions specifically tailored to the professional segment — especially freelancers and very small businesses (VSBs).
This segment has historically been underserved by traditional credit products, as lenders often lack automated risk assessment processes capable of handling diverse borrower profiles based on the non-standardized financial data available.
The macroeconomic context further complicates the challenge: today, risk selection is more critical than ever. Since 2022, the shift in the economic cycle — marked by a sharp rise in interest rates and tighter access to financing — has led to a significant increase in corporate defaults.
In addition, the gradual repayment of State-Guaranteed Loans continues to weaken some companies.
In this context, having a reliable, granular, real-time scoring system becomes a strategic lever for lenders who want to secure their exposure while tapping into the potential of this evolving market.
At Algoan, we believe that transactional banking data is the most relevant source for understanding the financial health of these types of businesses. Thanks to Open Banking and the adaptation of our scoring solutions, we can now offer real-time insights into business activity, through an automated, scalable, and transparent approach.
Our dedicated Open Banking scoring offer for professionals
Our solution has been specifically designed for freelancers and VSBs — a crucial pillar of the French economy often overlooked by traditional banking tools.
What we deliver is a dynamic view of a company’s financial health, based on transactional banking data, with a level of analysis made possible by our proprietary technology stack and algorithms:
- Banking data clustering to identify recurring income/expense patterns from raw transactions
- Our Natural Language Processing (NLP) engine to automatically classify operations (revenues, URSSAF payments, payroll, etc.) and detect potential red flags (payment incidents, garnishments, debt collection agencies, etc.)
This analytical foundation powers our Credit Decisioning PRO suite, composed of two complementary products:
- Credit Insights PRO: Ultra-specific bank account categorization dedicated to professional accounts, with over 25 categories. This enables lenders to reconstruct a “P&L snapshot” based solely on banking data — far more up-to-date than the latest available balance sheets and income statements.
- Credit Score PRO: A behavioral credit score, ranging from 0 to 1000, calibrated for VSBs, allowing lenders to estimate a future probability of default.
By combining Credit Insights and Credit Score, lenders can make instant, accurate, and reliable credit decisions that are perfectly tailored to the unique profiles of freelancers and VSBs.
A future-proof solution
Our Credit Decisioning PRO solution has been in production with several financial institutions since late 2024, and initial feedback has been very positive — in line with the proven results we have seen with consumer credit.
Our APIs are easy to integrate, whether via Transaction Data — our own bank aggregation solution — or through a direct connection if the client already uses another aggregation provider.
Are you working in Risk Management, Data, or Open Banking?
Are you looking to streamline credit origination for freelancers, VSBs, or other professional segments?
We would love to discuss how we can support you.
A project? A question?
Looking to change the way you make credit decisions? Let's talk!
