DirectID, a UK-based, global fintech specializing in credit risk, risk analytics and predictive modelling, using bank transaction data, announced that Ingka Investments, the investments arm of Ingka Group, has made a EUR 9m minority investment in the company.
With a mission to promote financial inclusion through its global credit risk score, DirectID provides advanced data “to optimize credit & risk decisions in a growing number of countries.”
The company “gives risk managers a real-time dataset to drive efficiencies, optimize decisions and drive lifetime value across the credit life cycle.”
With DirectID’s insights, decision makers “can better assess risk regardless of age, location, and past credit performance.”
James Varga, CEO and Founder of DirectID, said:
“We’re proud to join Ingka Investments’ portfolio of market-leading firms. We are excited to be shaping a new global standard in credit scoring that enhances people’s lives by enabling access to products they need in an affordable way. Our coverage, advanced insights and predictive models provide a unique opportunity to achieve this by creating the world’s first real-time, inclusive, credit score based on open finance data.”
The funding provided will “accelerate the market launch of the most advanced predictive models for credit & risk, built from open banking data.”
In addition, DirectID will “expand their credit risk offering into new markets and accelerate the development of models for each stage of the credit life cycle, from originations through portfolio management to collections.”
Peter van der Poel, Managing Director of Ingka Investments, said:
“We are pleased to have made this investment in DirectID and are confident of their continued growth in the open banking market. They have developed an innovative solution with the potential to complement and disrupt the traditional credit and risk market and help drive financial inclusion for more people. Open Banking-enabled credit and risk insights is an area we believe can add value to Ingka’s financial services proposition in the future.”:
The investment is the latest in “a series of investments made by Ingka Investments.”
The aim is “to strengthen Ingka Group’s core retail business by investing in innovative companies in areas such as digitalization, customer fulfilment, fintech and sustainability, that support its ongoing transformation to become ever more affordable, accessible, and sustainable.”
As noted in the update, DirectID is “the global credit & risk platform for risk managers. The UK-based fintech provides open banking data and predictive models for smarter credit & risk decisions.”
With DirectID, decision makers can “access real-time data to optimize credit risk decisioning. DirectID’s advanced insights for affordability, income verification, financial distress, and more, are available through one simple connection.”
DirectID is “an early pioneer in open banking and powers some of the world’s largest and most innovative brands.”
The company’s CEO & Founder, James Varga, “lobbied the government for PSD2 and DirectID built the first ever AISP connection.” DirectID now “has the most comprehensive coverage of any provider in the market.”