KPMG acquires a minority stake in a fintech startup that limits the risks of lending using AI

17 septembrie 2018

To predict risk, the company applies artificial intelligence(AI) analysis on non-financial data including the behavior of potential borrowers. „AdviceRobo’s technology enables lenders, such as banks and retailers, to limit the risks of lending and reach a larger group of clients. The cooperation will enable KPMG to help its clients across the world to strengthen and future-proof their existing risk management.”, according to the press release.

As part of this alliance, AdviceRobo will have access to KPMG’s expertise in the fields of risk management, regulation, data and analytics. Advice Robo company will also have access to KPMG’s global network. Erik Rood, partner at KPMG Financial Services, will lead the cooperation on KPMG’s behalf.

Frontrunner in the sector
“AdviceRobo is definitely a frontrunner in the sector”, says Rob Fijneman, Head of Advisory at KPMG. Fijneman: “We are very pleased that the alliance with AdviceRobo will enable us to add these types of AI-based predictive behavioral models to our services for lenders. AdviceRobo’s models will enable lenders to improve their credit risk models and thus reduce costs, especially in areas where data is the limiting factor. In addition, it allows lenders to considerably increase their acquisition of new lending clients.”

AdviceRobo CEO Diederick van Thiel says there are some 4.5 billion people worldwide who have insufficient or no access to loans, because they have little or no credit history. “Our software enables lenders to target these underserved customers and streamline their credit processes,” said Van Thiel. “This stimulates prosperity and the economy. Moreover, this software has the potential to accelerate credit processes and identify the key risk signals of existing clients. For instance, the software can identify vulnerable consumers who will be at risk of defaulting on loans in the future.”

Development of new propositions
KPMG’s minority interest is a considerable boost for AdviceRobo. Van Thiel, “The combination of our competency in behavioral psychology and AI software with KPMG’s expertise and experience in the field of risk management, regulations and data analytics will result in new intelligent software products for our joint global client base. Cooperation with such a prominent player will give us the opportunity for future growth.” The two founders of AdviceRobo, Van Thiel and Rosali Steenkamer (CCO), will continue to head the company.

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Jan Schildbach – Analyst Deutsche Bank


„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”

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In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale in 2020?
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