MILAN, March 10, 2021 /PRNewswire/ -- Fido today announced that it has filed a nonprovisional patent application with the United States Patent and Trademark Office (USPTO) for providing a new credit score system and method with digital footprints.
The financial industry is undergoing rapid technological change. The most transformative information innovation is the increase in use of new types of data coming from the digital footprint of customers' various online activities, mainly for credit-worthiness analysis.
Credit scoring using so-called hard information (income, employment time, assets and debts) is nothing new. Typically, the more data is available, the more accurate is the assessment. But conventional credit scoring methods have two problems. First, hard information tends to be "procyclical": it boosts credit expansion in good times but exacerbates contraction during downturns.
The second and more complex problem is that certain kinds of people, like new young adults, immigrants and unbanked might not have enough hard data available.
Fido resolves the dilemma by tapping hundreds of digital footprints: the type of browser and hardware used to access the internet, cell phone data, the email address used and much more. Recent research documents that, once powered by artificial intelligence and machine learning, these alternative data sources are often superior than traditional credit assessment methods.
"The filing of this patent application validates our intention to create innovative credit scoring solutions that are designed to increase the acceptance rate, reduce defaults and advance financial inclusion with the use of soft data powered by artificial intelligence," said Fido CEO and Chairman Marko Maras.
Fido (www.fido.id) is a digital credit scoring company, which has created the first European platform to rate the quality of digital consumers through digital footprint detection. Thanks to a proprietary tracking system, Fido collects, in full respect of privacy, information that allows the profiling of consumers and quantifies the probability of non-repayment of any credit granted by the retailer. The service is functional to companies of any size (consumer credit companies, digital retailers, small start ups). Investors include Giorgio Valaguzza (Ithaca Investments), Alessandro Fracassi (Gruppo MutuiOnline), Attilio Mazzili (Orrick), Fernando Spallanzani (Banca Privata Leasing), Giacomo Sella (Gruppo Sella), and IAG (Italian Angels for Growth).