Supercharge Your Credit Risk Management: Invevo and Open Banking Data w/ DirectID

In today's fast-moving business landscape, managing the receivables lifecycle is crucial for financial success. With the emergence of open banking and technology solutions like Invevo, businesses now have the opportunity to revolutionise their receivables management processes like never before.

“What is open banking?” I hear you ask, dear reader! Read our article breaking down this new and exciting tech 👉 https://www.invevo.com/blog/what-is-open-banking

Open banking has empowered individuals and SMEs to scrutinise their own banking performance and make data-driven decisions. At Invevo, we recognise the immense value that open banking data brings to credit risk management. Our cutting-edge software solution leverage open banking data to supercharge credit risk assessment, enabling businesses to make more informed and data-driven decisions.

One of the crucial processes that lie within the receivables lifecycle is credit risk management which plays a crucial role in the success and stability of businesses. Traditionally, assessing creditworthiness and managing credit risk has relied on limited data sources and manual processes. However, with the advent of open banking and the availability of comprehensive financial data, credit risk management has entered a new era of efficiency and accuracy.

There is immense value that open banking data brings to credit risk management. Our cutting-edge software solutions leverage open banking data to supercharge credit risk assessment, enabling businesses to make more informed and data-driven decisions.

Let's explore how open banking data can supercharge credit risk management and empower businesses to mitigate risks effectively.

The Evolution of Receivables Management:

Traditional receivables management has long been plagued by challenges such as manual processes, slow payments, and limited access to accurate data.

Financial directors have grappled with the complexity of juggling multiple systems, resulting in inefficiencies, missed opportunities, and cash flow bottlenecks. It is essential for businesses to streamline processes, improve efficiency, and maximise working capital to thrive in today's competitive environment.

Introducing Open Banking:

Open banking has emerged as a transformative force, revolutionising the financial industry by granting secure access to financial data. It enables businesses and consumers to share their financial information securely and seamlessly with trusted third-party providers. This sharing of data empowers businesses to harness the power of real-time insights and make data-driven decisions, transforming the way receivables management is approached.

Leveraging Open Banking in Receivables Management:

At Invevo, we recognise the significance of open banking in optimising the receivables lifecycle. By integrating open banking data, Invevo empowers businesses with comprehensive insights into customer behaviour, credit risk, and financial health.

Providing clients with intelligent data to confidently assess affordability, income, cashflow, emerging financial distress, this data-rich approach enhances the accuracy and timeliness of receivables management, allowing financial directors to make informed decisions and take proactive actions.

Comprehensive Financial Insights:

Open banking provides access to a vast array of financial data from multiple sources, such as banks, lenders, and financial institutions. By integrating this data into our credit risk management systems, Invevo enables businesses to gain a comprehensive view of a customer's financial health. This includes real-time information on income, expenses, credit utilisation, and repayment patterns. Armed with this rich data, businesses can make accurate and timely credit risk assessments, ensuring responsible lending practices and minimising default risks.

Enhanced Risk Assessment

The availability of open banking data allows for a more granular and holistic evaluation of credit risk factors. Invevo's software harnesses this data to analyse historical financial behaviour, identify patterns, and assess creditworthiness with greater precision. By considering factors such as income stability, debt-to-income ratio, and financial commitments, businesses can make informed decisions about credit limits, interest rates, and repayment terms. This empowers businesses to optimise their risk exposure while catering to the unique financial circumstances of their customers.

Real-Time Monitoring and Alerts

Open banking data provides a real-time pulse on a customer's financial situation. Invevo's credit risk management solutions leverage this data to implement proactive monitoring and trigger alerts based on predefined risk thresholds. Businesses can receive notifications of significant changes in a customer's financial behaviour, such as missed payments, increased credit utilisation, or signs of financial distress. This enables businesses to take timely actions, such as implementing credit limit adjustments, initiating debt recovery processes, or offering financial guidance to customers in need.

Data-Driven Decision Making

Open banking data empowers businesses with accurate and up-to-date information, allowing for data-driven decision making. Invevo's software integrates this data into intuitive dashboards and analytics tools, enabling businesses to derive actionable insights. By leveraging advanced analytics and machine learning algorithms, businesses can identify trends, predict credit risks, and optimise credit risk management strategies. This data-driven approach reduces reliance on manual processes, minimises human errors, and enhances overall credit risk assessment accuracy.

Compliance and Security

Invevo understands the paramount importance of data privacy, security, and regulatory compliance. Our software adheres to stringent data protection protocols and complies with industry standards and regulations. Open banking data is handled with utmost care and safeguarded through robust security measures, ensuring the confidentiality and integrity of sensitive financial information.

The Synergy of Invevo and DirectID

Invevo recently partnered with DirectID, an open banking data provider, to enhance the capabilities of its receivables management solution. This collaboration allows businesses to leverage the power of DirectID's open banking data seamlessly within Invevo's software. By combining the expertise and technology of Invevo and DirectID, businesses gain a comprehensive and holistic view of their receivables lifecycle, enabling them to unlock new opportunities and drive success.

For us it’s about supporting and empowering individuals with access to their banking data and use that to access products and services quickly.

We’ve been around for a long time and have a huge amount of experience. As a business, we’re completely focused on solving credit and risk. Essentially creating better, quicker, easier credit scores for people.

One of the significant advantages of incorporating open banking data into the receivables lifecycle is enhanced visibility into customer financial behaviour. With access to real-time transactional data, businesses gain a deeper understanding of their customers' financial standing, including income patterns, spending habits, and payment histories. This wealth of information enables businesses to assess customer creditworthiness accurately, set appropriate credit limits, and tailor payment terms to suit individual customers' financial capabilities.

By leveraging open banking data, businesses can streamline the invoicing and collections process, reducing manual efforts and improving efficiency. Real-time transaction data allows for automated invoice reconciliation, eliminating errors and discrepancies. Businesses can also integrate open banking data into their collections systems, enabling them to identify customers who may be at risk of defaulting on payments and take proactive measures to address potential issues. This proactive approach improves cash flow management and reduces the impact of bad debts on the business.

Empowering businesses to better assess credit risk and streamline order approvals, open banking offers a game-changing opportunity. By leveraging open banking data, businesses can invite their customers to securely share their bank transaction data. This level of transparency enables businesses to gain a comprehensive understanding of their customers' financial health, income patterns, and spending behaviour. Armed with this rich data, businesses can make more informed credit risk assessments and make data-driven decisions regarding credit limits, order approvals, and payment terms. This not only minimises the risk of default but also enables businesses to offer tailored solutions that align with their customers' financial capabilities. Embracing open banking empowers businesses to strengthen their credit risk management practices and provide a more efficient and personalised customer experience.

Unlock the Benefits:

Enhanced Risk Assessment

By accessing a customer's financial data through open banking, suppliers can perform a comprehensive risk assessment, making informed decisions about credit terms, collateral requirements, and overall trade relationships.

Simplified Onboarding Process

Open banking data enables suppliers to securely and efficiently verify a customer's financial stability and credibility, expediting the supplier onboarding process.

Efficient Fraud Prevention

By leveraging real-time transaction data from the customer's bank, the supplier can enhance fraud detection and prevention measures, protecting the supplier.

Conclusion:

By embracing the power of open banking and Invevo's cutting-edge software, businesses can empower their customers to share their bank transaction data for improved credit risk management. Say goodbye to manual data migrations and manual credit risk assessment processes. Embrace the future of receivables management with Invevo and unlock new opportunities for growth and success.

Are you ready to harness the power of open banking and revolutionise your receivables management with Invevo?

Contact us today and begin your journey towards optimised back office operations and financial success.