AI-Powered Credit Risk Intelligence: Revolutionising Midmarket Corporate Credit

Corporate credit for your business is like trying to find a parking space in town on a Saturday – stressful, time-consuming, and usually ending in disappointment. We've ditched the old-school credit reports and the endless waiting. At Numarqe we use a sophisticated AI-driven engine that's like having a financial detective on the case, figuring out what makes your business tick. We get your business faster answers, fairer deals, and credit that fits you like a tailor-made suit. In the words of Montell Jordan, "This is how we do it"

Managing corporate finances for any financial institution is evolving—it has to because businesses are evolving. Managing credit risk is paramount. Traditional methods often fall short, relying on manual processes, outdated data, and human bias, leading to inefficiencies, missed opportunities, and untimely risks.

Numarqe is changing the game with its AI-driven credit risk intelligence platform, designed to empower businesses with real-time insights, enhanced decision-making, and optimised portfolio monitoring.

The Limitations of Traditional Credit Risk Assessment

Traditional credit risk assessment models for corporate credit cards often suffer from several drawbacks:

  • Reliance on Outdated Data
    Credit decisions are often based on historical financial statements and credit reports, which may not accurately reflect a company's current financial health. This reliance on outdated information can lead to misinformed decisions, where businesses either receive more credit than they can handle or are unjustly denied the credit they need to grow.
  • Manual Processes
    Collecting, verifying, and analysing data manually is time-consuming, prone to errors, and can lead to delays in decision-making. This inefficiency not only slows down the approval process but also increases operational costs and the likelihood of human error.
  • Human Bias and Inconsistency
    Subjective judgement and personal biases can influence credit assessments, leading to inconsistencies and potentially disparate outcomes. Different credit officers might interpret the same data differently, resulting in varied credit limits and terms for similar businesses.
  • Lack of Real-Time Monitoring
    Traditional methods often lack the ability to monitor credit risk in real-time, making it challenging to identify and address emerging risks promptly. Without real-time monitoring, businesses may face financial difficulties before any warning signs are detected.

Numarqe's AI-Powered Solution: Transforming Credit Risk Intelligence

Numarqe's AI-driven credit risk intelligence platform, which we affectionately named ATHENA (Adaptive Transaction Heuristics with Enhanced Neural Assessment), addresses these challenges head-on, providing a comprehensive and innovative solution for corporate credit underwriting.

  1. Real-Time Data Analysis
    Numarqe's platform leverages advanced machine learning algorithms to continuously analyse various data points (assets), including transaction history, spending behaviour, patterns, and external financial data such as accounting and credit agency reports. This real-time analysis provides up-to-date insights into a company's financial health and creditworthiness.
  2. Predictive Modelling
    Using historical data and identifying patterns, Numarqe ATHENA's AI models can predict future credit behaviour, enabling proactive risk management and informed lending decisions. By anticipating potential risks and opportunities, businesses can plan more effectively and avoid financial pitfalls.
  3. Automated Underwriting
    Numarqe's platform automates the underwriting process, reducing the need for manual data collection and minimising human bias. This leads to faster decision-making and a more consistent assessment of creditworthiness. Automation also frees up valuable time, allowing Numarqe to be lean and focus this time on customers.
  4. Enhanced Portfolio Monitoring
    The platform continuously monitors the credit risk of a portfolio of corporate customers, providing early warning signals of potential risks that can be investigated with the customer and enabling timely interventions to mitigate losses. This proactive approach ensures businesses can address issues before they escalate, preserving their financial stability.
  5. Personalised Credit Limits
    Numarqe's AI-driven engine can dynamically adjust credit limits based on individual customer behaviour and risk profiles, ensuring businesses can access the credit when needed. When customers need further credit, decisions can be made quickly compared to traditional credit providers' long lead times. This flexibility helps businesses manage their cash flow more effectively and seize growth opportunities as they arise.

Benefits to our customers

  • Faster Access to Credit
    Automated underwriting enables faster approval times, giving businesses faster onboarding decisioning and quicker access to the funds they need when they need it so that finance teams can invest in growth. This speed is crucial in today's fast-paced business environment, where opportunities can be fleeting.
  • Fairer Credit Decisions:
    AI-powered analysis removes human bias, ensuring credit decisions are based on objective data and consistent criteria. This fairness fosters consistency and trust between businesses and Numarqe, leading to more robust, more collaborative relationships.
  • Personalised Credit Limits
    Dynamic credit limits that adapt to your business's performance provide the flexibility to manage cash flow effectively. Whether a business is experiencing rapid growth or facing temporary challenges, Numarqe's platform ensures it has the credit it needs to navigate its financial journey.
  • Improved Financial Management
    Real-time insights into spending patterns and potential risks empower businesses to make better financial decisions. With a clear understanding of their financial health, corporates can optimise their operations, reduce costs, and maximise profitability.
  • Reduce Fraud
    ATHENA’s engine can detect patterns and anomalies in transaction data that may indicate fraudulent activity. Simulating fraud scenarios and developing models to detect anomaly outliers can help prevent future fraudulent behaviour. This proactive approach helps safeguard assets and protect customers from financial crimes.

Benefits to Numarqe

  • Reduced Risk
    Numarqe's risk management framework minimises the risk of defaults and losses, preserving capital. By accurately assessing creditworthiness and monitoring portfolios in real-time, Numarqe can mitigate potential risks before they impact the bottom line.
  • Enhanced Returns
    By accurately assessing creditworthiness and identifying growth opportunities, Numarqe can help drive portfolio performance and maximise returns. This strategic approach ensures that Numarqe's investments yield the highest possible returns while maintaining a balanced risk profile.
  • Transparency and Trust
    The platform's data-driven approach and real-time reporting give investors greater transparency into the drivers of credit assessments and confidence in Numarqe. By providing clear, objective insights into portfolio performance, Numarqe builds trust with its investors, fostering long-term, consistent partnerships.
  • Consolidated View of Credit Risk Globally
    Numarqe’s ATHENA can seamlessly integrate across multiple ERPs and business entities and review credit risk in a standard, global currency. Our senior management can review the overall credit risk exposure across geographies to develop more optimal strategies. Additionally, they can drill down to a particular geography and check credit exposure.
  • Adding data from various Credit Agencies and Bureaus
    Automatically extract third party credit reports, ratings, financials, and credit insurance information from various global and local agencies such as Experian, CreditSafe, Equifax and more.
  • Automated Credit Scoring
    Automated credit scoring is the swift evaluation of a business’s creditworthiness using Numarqes advanced algorithms and criteria.. It assesses financial features to generate a numerical score, streamlining decision-making for credit teams. The credit scoring models can be assigned seamlessly across business units, geographies, or diverse customer segments.
  • Automated benchmarking
    By continuously analysing data from external sources, Numarqe’s ATHENA can perform financial benchmarking against similar companies in the same sector or industry to derive the relative importance of key metrics and performance indicators.
  • Alternative data
    ATHENA has the capability to consume non-standardised datasets and can search for qualitative-driven metrics about companies, such as sentiment, allowing NUMARQE to understand public opinion, brand perception, and emotional reactions of their customers.

Numarqe's AI-powered credit risk intelligence platform is revolutionising corporate credit management. By leveraging advanced technology and data analytics, Numarqe empowers businesses with the tools they need to make informed financial decisions while minimising risk for investors.

As the economic landscape continues to evolve, Numarqe is poised to lead the way in transforming credit risk management for the digital age. Our commitment to innovation, transparency, and customer-centric solutions ensures that we remain at the forefront of the industry, helping businesses and investors alike navigate the complexities of corporate finance.

Numarqe's AI-driven approach to credit risk intelligence represents a significant leap forward in the management of corporate credit. By addressing the limitations of traditional methods and offering a comprehensive, real-time solution, Numarqe is setting a new standard for the industry. Mid-market businesses can now enjoy faster, fairer, and more flexible access to credit, while investors benefit from reduced risk and enhanced returns. As we continue to innovate and adapt to the changing financial landscape, Numarqe remains dedicated to empowering businesses and investors with the insights and tools they need to succeed.

To learn more about how Numarqe can transform your corporate credit management, speak to our sales team today to learn more.

2024 Numarqe Limited, All rights reserved. Numarqe Limited is registered under company registration number 12587141, 47 Red Lion Street, London, England, WC1R 4PF. Numarqe Capital Limited is registered under company registration number 13726764, 47 Red Lion Street, London, England, WC1R 4PF.
Opens LinkedIn