Vizibiliti Insight analyses R12 Billion in loan value using Alternative Credit Scoring data
Courtney Bentley started Vizibiliti Insight (VI) in 2016 and shortly thereafter participated in the LaunchLab’s Retail Innovation Challenge in partnership with ATTACQ. From participation in that challenge, the VI team gained exposure to the tenant opportunities and challenges in the commercial property market. They initially built an alternative credit scoring model for businesses renting from businesses.
With the learnings gained from this engagement with ATTACQ, VI then turned their focus to engage more of the consumer market through another LaunchLab challenge, this time with Mercedes-Benz South Africa (MBSA). Courtney pitched to the Daimler global board of management at their plant in East London. Here VI was named one of the 3 winners and this consumer product started gaining a lot more traction. From there, VI was named the winner of the Digital Customer Experience Award at Vivatech in Paris, and has worked with several more large telecommunication and financial institutions in South Africa and in the US.
Since August 2018 Vizibiliti Insight has successfully analysed over R12 billion in loan value. Loans included both commercial and individual consumer profiles.
Loans were analysed using Vizibiliti’s proprietary credit scoring algorithm which, using Artificial Intelligence, predicts positive and negative credit risk events.
A key insight is that Vizibiliti’s deteriorating alternative credit profiles have been directly linked to high credit and fraud risk profiles. This proves that when Vizibiliti’s consumer profiles deteriorate, they are directly associated to a high-risk event.
Vizibiliti’s alternative credit scoring platform combines hundreds to thousands of alternative data points on consumers and businesses which are not considered in traditional credit scoring to make credit risk predictions.
Several predictive Artificial Intelligence models are running on the loans which include predicting credit default, lapse, and advanced collections prioritisation models assisting in the debt recovery process.
Predictive model performance improved in accuracy by 12% in the space of two weeks, which is unusual in the financial services industry given the time frame.
The accuracy of the predictions was linked back to financial values which indicated that millions of rands worth of credit provided to both individuals and businesses were at risk of being lost.
The significance of the insight is that credit lenders can prevent substantial losses on their balance sheets by using alternative credit data generated by Vizibiliti’s AI credit scoring engine.
Advancements in Vizibiliti’s alternative credit risk platform has recently enabled over 21 million South African’s which include fat-file, thin-file and no-file credit profile consumers to gain an alternative credit score.
With 90% of job creation expected to come from small business by 2030, it is of utmost importance that individuals and businesses have access to financial services which alternative credit scoring plays a key role in.
The intelligence can be consumed by financial service providers to predict defaults, life events and product uptake opportunities. Consumers benefit by having a credit score which they would not have otherwise.
VI’s success is a great example of taking advantage of opportunities when they present themselves. It is one thing to have a network, it is another thing altogether to capitalize on that network. Typically, the early stages of the startup journey are more about the founders than the actual product. No matter how quality the product is, you need to be able to get it in front of people.
Vizibiliti Insight CEO Courtney Bentley stated that Vizibiliti will continue to build new Artificial Intelligence driven scorecards which support both lenders and individuals in the financial services sector to promote financial inclusion for all South Africans.
Vizibiliti Insight was accepted into the Knife Capital Grindstone 4 program and was a finalist in the 2018 CNBC AABLA Innovator of the Year Award. Bentley also indicated that a fund-raising round is expected to take place during the quarter 3 of 2019.