Alternative data in the credit risk assessment process: modefinance and The Data Appeal Company

modefinance 29 December 2022

New partnership agreed by The Data Appeal Company - an Almawave Group company which develops solutions for vertical AI analytics and a tourism, fintech and location intelligence leader - and modefinance - a fintech enterprise specializing in the assessment of corporate credit risk and a Rating Agency (CRA and ECAI), belonging to the TeamSystem Group. The collaboration enables the integration of alternative data into the latter’s analysis processes.

Alternative data, comprising reputational and spatial information, provided by the Almawave Group company adds to the sources of modefinance's proprietary Tigran platform, a "Rating-as-a-service" solution which automates and digitizes credit analysis and assessment processes. The agreement is yet another aspect of modefinance's strategy to deliver a comprehensive snapshot of the entity under analysis, through the availability of constantly updated data and information which represents a point as close as possible to the time of analysis (nowcasting). The alternative data reports upon aspects of environmental sustainability and will support the recently launched ESG rating process.

Mattia Ciprian, CEO of modefinance, stated: "This collaboration is of key significance for us as it further refines our analysis processes. In fact, the combination of traditional and alternative digital data collection and analysis is a crucial element for a true picture of the individual entities and critical for proper credit risk assessment. The Data Appeal Company's coverage is not limited to the domestic market - providing support also to modefinance international's activities in the UAE."

Mirko Lalli, CEO & founder of The Data Appeal Company and Chief Group Digital Strategy Officer of Almawave, underscores, "This agreement brings us even closer to the Banking&Finance world, providing key data for the development of increasingly innovative and up-to-date solutions. Through a strategic partner like modefinance, in fact, we will make available a very rich dataset of information covering Italian and overseas SME’s, from a spatial and reputational perspective.

The Data Appeal Company's data - both qualitative and quantitative - are collected from more than 130 online sources and analyzed using proprietary algorithms based on Artificial Intelligence and machine learning. It includes information on sentiment, the digital performances of the monitored companies and aspects of their environmental sustainability.

modefinance's proprietary evaluation system is based on the latest AI technologies for collecting the most accurate and reliable data, whether financial, social, environmental or governance, and on the proprietary MORE (Multi Objective Rating Evaluation) analysis methodology. A winning feature of our solutions is the proprietary modeling that mixes the latest data collection and processing technologies with traditional analytical work

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