Fintechs: second look at declined prospects can bring, on average, R$4 million more in annual revenue of a fintech without increased default, according to a study by Serasa Experian

An unprecedented study conducted by Serasa Experian, the first and largest datatech in Brazil, showed that it is possible for fintechs to safely extend their credit granting by up to R$ 4 million, on average, by fintech through a negated repechage model, that is, reevaluating new customers who had the credit refused at first, but who may be eligible with a complementary analysis. The study was conducted based on the fintech portfolio simulating a second level of complementary analysis in credit policy.

In percentages, the average amount of R$ 4 million represents an increase of 20% in the approvals of each Fintech from an analysis that takes into account criteria on the borrower that were not considered in the first evaluation, such as the trend of variation of the Score, history of punctuality of payment and the degree of severity of debts. Considering, for example, that 1/3 of the population has low severity debts, according to the Serasa restrictive basis, this more accurate analysis becomes even more important, since the creditor may be refusing a low-risk customer.

For Fernando Galbiatti, director of B2B Offers at Serasa Experian, this second look at customers who were previously refused is essential for Fintechs to be able to increase revenue, without additional cost of acquisition 'since the customer has already reached company 3 and maintain the default level foreseen in its credit policy. “With the repurchase of negates, a Fintech that today approves 25 of every 100 credit requests, for example, can, in a second analysis, pass to approve almost 30 and thus have more competitiveness, as they do not leave the competition to them.

This expansion of the credit offer does not impact the default rates, since it already takes into account the percentage of risk already worked by each fintech. Thus, the repechage of denials allows the expansion of gains, without compromising the security of the operation.

In addition, the adoption of the second analysis also brings direct benefits to the consumer who would have, at first, the credit denied. When evaluated in more depth and thus be able to be approved, he no longer needs to go in search of other creditors or eventually need to accept higher interest rates.

“By zooming in on consumers who were denied in a first analysis by the creditor's credit policy, we can, from the intelligence from complementary information, repescare customers who have a potential to consume credit, without increasing default. A consumer may, for example, not present minimum information that allows access to credit, but his CPF may be tied to a MEI of which he is a partner and may be generating recurring revenue. This is an example of the various profiles that can be detected when we analyze again the rejected CPFs. This strategy can be very interesting, especially for fintechs, a time that allows to change policy by aggressively adopting a lagd, by adopting a strategy by adopting a strategy that allows us to expand any.

The numbers are the result of a study done with the integrated solution Deny Repesage using Fintech cases as a starting point.

The analysis is made through a strategic and individualized evaluation of the provided base, joining exclusive and market data with the capacity of analytical intelligence, allowing to print a broad view of the potential of its customers by CPF and/or CNPJ. In the solution it is possible to identify the public with the greatest potential for re-fishing without increasing the risk exposure of Fintech. The study was also carried out in other segments, such as banks and financial, where a significant increase in the final approval rate was observed.