SMEs across Europe make use of Wiserfunding for analysis of credit score supported past financial history and a variety of freely accessible data.
Wiserfunding a, United Kingdom-based Fintech, has announced its entry into India for small and Medium Enterprises (SMEs). The corporate makes use of Artificial Intelligence (AI) and machine learning (ML) to supply unbiased credit risk assessment tools supported by past financial history and other data that are comfortably available within the market. The scores provided by them in the past have been 80 per cent accurate.
The company co-founded by Professor Dr Edward Altman, a pioneer of credit risks and also the inventor of the famous Z-score.
Z–score is a statistical formula used by investors and creditors to estimate the likelihood of the company going bankrupt by taking into account the firms core activities, liquidity, solvency, profitability and leverage.
The company has its internal operations across 38 countries with clients within the UK, Italy, Portugal, Germany, Netherlands, Poland, Latvia, Singapore, Thailand and South Africa. The panacea provided by the corporate has been, embraced by over 40 banks, NBFC lenders and investors across the globe.
The company initially aims to strategies and partner with 3-4 banks, 8-10 Non-Banking Financial Companies (NBFCs) and plan to discuss it with investors, funds, insurance companies and SMEs by financing USD 3-5 million over subsequent three years.
The concerns solution will benefit lenders and investors supply loans to the SME sector by modifying their pricing and increase the efficacy of their lending. It will be particularly useful for the SME sector as Non-Performing Assets (NPA) is a growing concern in India sector currently struggling thanks to the continuing pandemic, adversely impacting the record of the banks.
Dr Edward Altman, said, “Our mission is to empower SME growth in India and, there isn’t a better time than now. Typical to any economic shock, bank lending is expected to reduce for SMEs, making it more difficult for them to survive. It will be important to have a reliable and accurate assessment of businesses’ viability and, technology will be central to such an analysis. Indian banks and financial institutions will see a significant benefit in using a more independent and unbiased risk assessment platform with the entry of AI-powered models.”
Dr Gabriele Sabato, Co-founder and CEO, Wiserfunding said, they are delighted to possess the chance to enter the Indian market during a moment when support to SMEs is so critical.
It is the company’s first-ever international office outside Europe with Ms Avantika Goel, relocating from London to Mumbai, as the Country Head of India.