Fintech improves customer experience by enabling ING to predict borrower performance and provide targeted, pre-incident outreach
Expanding on a successful partnership, ING and Flowcast Inc. announced a pilot of a platform that enables the global financial institution to predict which of its borrowers are likely to fall behind on loan payments, allowing it to take preventive and proactive measures. As part of the agreement, ING is investing an additional USD 3 million into Flowcast, a fintech startup that provides AI solutions to modernize credit and collection.
Knowing which customers are likely to struggle with their debt burden allows the bank to direct experienced agents to the highest-risk cases, while offering targeted, flexible programs such as loan restructuring or eased credit terms to other at-risk groups.
“Credit decisioning is a core capability of ING, which we are continuously seeking to strengthen in order to improve our offering to ING’s clients. We believe that machine learning and alternative data capabilities such as those developed and refined by Flowcast will shape the future of financial services and is therefore a strategic priority,” said Frederic Hofmann, managing director of ING Ventures.
Drawing on cutting-edge research in machine learning, data science, and artificial intelligence, the Flowcast technology allows financial institutions to perform continuous predictive underwriting of its loan portfolio in order to more confidently and efficiently manage its customer relationships and increase lifetime customer value.
“Our service allows the bank to be proactive about its lending portfolio, reducing costs, customer churn, and improving the borrower experience,” says Ken So, co-founder and CEO of Flowcast. “It’s a great example of how our credit analysis platform is modernizing both sides of the credit marketplace.”
Leveraging its patented machine learning technology and a highly acclaimed team of data scientists, Flowcast creates high-performing, explainable predictive models that assess risk more accurately and unlock value from troves of untapped data. For financial institutions, the result is improved customer experience, reduced levels of customers in arrears or default, as well as substantially reduced loan-loss provisioning costs.
In 2020 the company launched Tillful, a consumer-facing platform which utilizes the same core technologies to provide fast, free, and transparent credit scores, and access to credit, to every small and midsize business in the United States.