Banxware is an embedded Lending as a Service Provider, built to democratize access to capital. Banxware abstracts away the complexity of building lending in-house by securing a credit line, handling KYC, AML & credit decisions, and managing payouts & repayments. Through their solution, platforms and payment providers, such as Fiserv, Forto and Lieferando can offer fully digital business loans to their sellers.
See also the case study on Banxware's website.
Risk Decision Challenges
Banxware must make individual credit risk decisions on each loan application from small businesses as they apply for finance via their marketplaces and merchant partners.
All of Banxware’s customer and loan application-related data is stored in Snowflake, the cloud based data warehouse solution. Before making a credit risk decision about whether to approve a loan application, Banxware’s risk team first of all needs to check whether the applicant has previously applied for finance, or is already a Banxware customer.
This process was a headache for Banxware’s risk team, as small differences in loan applicants’ details made it difficult to find duplicate applications, which could signify potential fraud cases. In addition, Banxware needs to comply with European Banking Authority (EBA) “Guidelines on Connected Clients” to avoid credit concentration risk by lending to different companies that are actually related to each other.
As loan volumes increased, Banxware needed to find a more scalable solution.
Partnering with Tilores
“Having built highly scalable lending platforms before, I know how critical good data is for credit risk decisions and fraud prevention, so I was delighted to partner with Tilores. Their identity resolution technology gives us exactly what we need to detect in real-time whether loan applicants are duplicates, or truly unique customers.”
- Nicolas Kipp, Co-founder and Chief Risk Officer at Banxware.
Banxware considered building their own workflows to detect duplicate data in their data warehouse, but realised that to build an enterprise-level entity resolution system would be expensive and divert valuable engineering resources from working on their core lending product.
With Tilores, they found a Snowflake Technology Partner that already had a bespoke integration that makes it quick and easy to connect to Snowflake. Banxware’s risk team was able to connect Tilores to their Snowflake data warehouse, without having to involve their engineering team.
Another of Banxware’s technology partners, Taktile, the credit risk decision platform, built an integration with Tilores via the API so that customer data in Tilores is queried in real-time via Taktile to verify whether a customer is unique, a duplicate or potentially related to other Banxware customers.
With Tilores’ entity resolution technology at their side, Banxware now has the advanced data infrastructure to complement their credit risk decision models that will scale with them as their business grows on their journey to becoming Europe’s number one embedded finance provider.
Visit Banxware
Key Metrics
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✅ Nearly 100% reduction in manual review of loan applications.
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✅ One day to configure Tilores’ integration with Banxware’s Snowflake data warehouse.
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✅ One week for Taktile to build an API integration and connect Tilroes’ data into Banxware’s credit risk division workflow.
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✅ Significant increase in detection of non-obvious customer duplicates and related accounts over manual process.
