Franfinance Deploys Algoan's Open Banking Solutions to Enhance Performance

Franfinance is a French subsidiary of the Société Générale banking group and a key player in financing. Franfinance specializes in leasing for businesses as well as consumer credit for individuals.

The need: Maximizing Credit Decision Automation with Cutting-Edge Technologies

Franfinance aims to rely on innovative tools to profoundly transform its decision-making process across its various credit and payment solutions. The objectives are manifold:

• Speed up decision-making with the goal of achieving instant decisions
• Optimize risk while serving a broader audience
• Reserve expert intervention for the most complex cases

In essence, the goal is to make credit processes more efficient and customer-centric!

The solution: Integrating Open Banking and Decision-Support Tools into Financing Processes

For several months, Franfinance has been offering a split payment customer journey with instant decision-making on various partner e-merchant websites.

After choosing the Franfipay credit solution, the customer provides some personal information and then connects their bank account via Open Banking.

The transactional data retrieved is then processed by Algoan’s credit decisioning products to determine the customer’s eligibility:

• Algoan Credit Insights assesses a customer's affordability using a range of key indicators, including income, debt-to-income ratio, and disposable income. These insights are derived from an advanced categorization of bank transactions, specifically optimized for comprehensive credit risk analysis.
• Algoan Credit Score assesses creditworthiness based on banking data, reflecting the applicant’s financial behavior rather.

This analysis is delivered to Franfinance within seconds, allowing them to assess the customer's ability to meet payment obligations and provide an instant response seamlessly within the customer journey.

By integrating Algoan’s solutions into multiple split payment journeys, Franfinance swiftly recognized their value and is now planning to scale their deployment extensively in the near future.

"After an initial phase focused on e-commerce, we plan to extend Open Banking services to all our customer journeys starting in H1 2025. This second phase will allow us to rapidly capture significant volumes and gain valuable experience."

Alexis Beau, Development Director at Franfinance

The results: Rapid Learning to Broaden the Use of Our Open Banking-Based Credit Decision Solutions!

The deployment of Algoan’s solutions across a dozen e-commerce websites over several months has allowed Franfinance to envision extending their use to personal loans by next spring, followed by revolving credit.

"The initial results are encouraging, and we can see that the setup is highly suited to e-commerce financing. We are quite confident that the promise of a streamlined process and fast decision-making will also encourage personal loan and revolving credit applicants to share access to their banking data."

Alexis Beau, Development Director at Franfinance

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"This collaboration with Franfinance perfectly illustrates how Open Banking and our credit decisioning solutions can transform loan application journeys. By combining instant decision-making, performance, and a detailed risk analysis, we enable our partners to innovate while ensuring an optimized and responsible user experience."

Michaël Diguet, CEO of Algoan