1st December, 2021

Scorify will develop an innovative factoring risk assessment system that will increase the accuracy of factoring companies’ customer behavior predictions using advanced scientific methods.

The project will be implemented with factoring company Faktoro and competent and experienced team of data scientists, joined by Vilnius University professor Dr. (HP) Marijus Radavicius. The solution will help companies strengthen customer service, increase sales to customers, and minimize potential losses due to possible insolvency by customers.

The new risk assessment system will enable factoring companies to assess the overall risk of the customer, as well as the risk level of each specific invoice. Both traditional and alternative data will be integrated into the solution. Data analysis of such a wide-ranging and comprehensive solution has not been developed either in Lithuania or region till know.

Andrius Bogdanovičius, CEO of Scorify, comments: “Scorify’s innovative solutions, combining traditional risk assessment models with artificial intelligence and machine learning solutions, enable our partners assess their customers and predict their behavior more accurately. Thus, they can allocate their internal resources more efficiently, dedicate more time and attention on excellency of customer service, improve other internal processes. This solution is no exception and will increase the competitiveness of the entire factoring market vis-à-vis other financing services, creating better infrastructure for providing credit services for small and medium-sized enterprises. We will offer this solution to other Lithuanian companies as well and other markets, as it will be easily adapted to requirements of other countries”.

Algirdas Gutauskas, CEO of Faktoras says: “The new risk assessment model will improve the competitiveness of factoring companies, help to improve their customer service and stimulate development of services in the domestic and foreign markets. Our customers expect a quick service, so after testing the tool in real conditions, we will be able to validate decision for financing SMEs immediately after receiving application. For comparison, now decision is taken within 24 hours. Instant process will create positive opportunities for our clients to grow more rapidly, AI and machine learning methods will reduce the risk of the transaction, thus reducing the final cost of our services. After implementing the solution, we expect to expand our operations in other countries faster, to have an advantage over other companies operating in the field of financing”.

M. Radavicius, Data scientist: “Modern business solutions require more and more scientific and statistical methods, as the volume and complexity of data is growing. Effective cooperation between business and scientists allows creating reliable and efficient business solutions with added value to society. Researchers appreciate the opportunity to apply scientific methods more intensively, create new ones and actively test them with real company data“.

A. Bogdanovičius adds: “Experience of Mr. Radavicius in the field of statistical modeling will be very important in developing the most advanced factoring risk assessment solution in the market, while using most advanced statistical and machine learning methods and ensuring not only high model efficiency but also transparency of the model. This is a necessary feature in the regulated field of credit risk assessment”.

The project is co-funded by the Norwegian Financial Mechanism Program for Business Development, Innovation and SMEs in the field of information and communication technologies. The project is being implemented together with partners UAB Taurus fondas (operating under the Faktoro brand), International Development Norway AS and Smart Finance Solutions AS. More information on the MITA project can be found at this link, the Norwegian Financial Mechanism at this link.