Banks adopting Fintech solutions: the partnership between modefinance and Banca Progetto

Fintech 21 September 2020

Fintech companies have historically been considered as traditional banks’ main competitors. But recently, new ventures reported a closer collaboration between these challengers-and-incumbents.

Both aiming at providing efficient and tailor-made services to customers, banks and Fintech companies are eventually discovering their complementarity. Along with an incrementation of alternative financing solutions, the cooperation succeed in optimizing banks’ internal legacy system, as demonstrated by the partnership between the Fintech Rating Agency modefinance and Banca Progetto.

With the adoption of modefinance’s Rating-as-a-Service platform, Banca Progetto improved credit risk management activities by fully digitalizing the creditworthiness assessment process. Thanks to Data Science and Artificial Intelligence methodologies, the platform enables Banca Progetto’s financial analysts to exploit rating agencies’ tools and know-how, to significantly enhance their risk screening and forecast capabilities.

The implementation of RaaS in Banca Progetto

With the integration of the Rating-as-a-Service platform within the operating system of Banca Progetto, we achieved a great result: a whole new level of process automation for the due diligence.

Thanks to a modular structure made up of automated analysis modules, the platform cuts down up to 95% of routine activities, with a perceivable reduction in terms of costs and times.Excluding bureaucratic delays, the entire due diligence process can potentially take less than 5 minutes, thanks to API connections that link the platform with different sources for the download of companies data (balance sheets, corporate structure, cadastral data, credit bureaus data, guarantee fund eligibility, ecc.) and to an analysis process divided into steps that reproduce bank’s internal workflow.

A permission-based structure allows defining the users’ hierarchy, where authorized users belonging to different departments can enter specific stages of the assessment process and/or to cooperate on defined analysis steps without overlap.

Along with the automation of the due diligence process, the implementation of the Rating-as-a-Service platform reduces its human effort -making easier to perform an accurate and in-depth analysis and streamlining the decision-making process. The first beneficiaries are the banks’ customers: efficient back-end processes cut off the waiting times for eligibility.