Fintech Firms Must Properly Manage Cash Flow, as COVID-19 Is Making it Challenging to Assess Credit Risk, Monedo CEO Says

David Chan, CEO at Monedo (previously Kreditech), a point of sale (PoS) lender that claims to have more than one million customers who have reportedly received over 2 million loans (as of March 2020), says that the online lender has a global addressable market of 300 billion Euros in consumer credit issuance.

Chan said his company aims to tap into this market segment in order to further expand Monedo’s operations.

During a recent interview with the Fintech Times, Chan confirmed that the alternative online lender is currently offering services in India, Poland, Spain, and Russia. The company aims to leverage the latest technology in order to enable greater financial inclusion.

Like many other Fintechs, Monedo aims to serve consumers that may be unable to access traditional banking services.

Chan said the company’s data scientists are using AI and machine learning to enhance the lending process. Monedo uses advanced algorithms to determine customers’ credit worthiness.

Chan explained:

“Our AI-driven credit scoring technology and digital lending process is fully automated and needs no human intervention. This means Monedo customers can receive personalized loan offers and pay-outs when they need them.”

Responding to a question about how the Fintech sector can respond effectively to the challenges created by COVID-19, Chan said:

“Fintechs need to focus on managing cash flow and profitability as a matter of urgency. The pandemic is also creating new challenges in terms of assessing credit risk.”

While explaining how Monedo’s PoS tech works, Chan noted:

“Our e-commerce or ‘point-of-sale’ technology also means we’re able to open up new lending channels, which is creating new revenue streams for us and online retailers, while providing more flexibility for online shoppers.”

He claims that the company’s “pay-later” service has seen increased adoption in Poland, especially during the pandemic

Like many other Fintech professionals, Chan believes that the changes in consumer behavior due to the Coronavirus crisis might be permanent.

He stated:

“I strongly believe this ever-evolving behavior of more people shopping online using their laptops and mobile phones will be a permanent change and reinforce opportunities for digital businesses like ours.”

Founded in 2012, the company focuses on online lending to customers in the near-prime segment. Installment loans are Monedo’s key product and constitute as much as two-thirds of its global portfolio.

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