Scorable's Artificial Intelligence-based credit risk analysis solution has won over Talanx, one of Europe's largest insurance groups, which, via its subsidiary Ampega Asset Management, has supported the fintech in its structuring. The company is now planning to expand its activities in Europe. Read all about it.
Helping asset managers assess the risk of a bond investment
Founded in April 2018 in Berlin, Scorable uses Artificial Intelligence to measure the risk of a bond investment. Its solution involves collecting data from several sources (annual reports, financial news, accounting data, stock prices, financial ratings of major companies...) to determine their influence on a company's creditworthiness. The manager obtains a result in the form of a rating, and can then secure his or her decision-making. The technology developed by the startup is totally transparent, and enables all stages of a company's credit risk assessment to be followed.
Scorable sets itself apart by integrating qualitative data into the analysis, whereas until now, credit risk assessment has focused primarily on quantitative data, ignoring relevant information from annual reports and news articles. The startup's AI is able to refine the analysis thanks to this textual information. The use of Artificial Intelligence makes it possible to control risk while remaining competitive. In this way, the German fintech aims to provide an answer to the rising costs of credit risk management for asset managers.
Scorable prepares for international expansion
In December 2019, Scorable announced its launch on the French market specifying that with over 4,000 billion euros in assets under management in France, the needs are very great, particularly for institutional investors. 40% of these assets are not covered by Artificial Intelligence solutions. Scorable's arrival on this market should enable asset managers to better assess credit risk. However, several startups have already made their mark, such as robo-advisor Yomoni, AMfine and Anatec, best known for its WeSave website.
Alongside its launch in France, the startup has also established a presence in the USA, the Netherlands, Switzerland and Luxembourg. This year, it is due to offer its services in the UK. More specifically, Scorable currently boasts two asset managers in the United States, two in Germany and one in France, managing a combined total of €952 billion. It has set itself the target of winning 8 to 10 customers in France by the end of 2020.
In addition to its internationalization, its founders plan to enrich the number of data sources by integrating new news sources or CDSs (credit default swaps), derivatives that guarantee the risk of non-payment of a debt issued by a government or company.