Mifundo, a Tallinn-based fintech company specializing in cross-border credit assessments, has partnered with Experian to address a key challenge for EU expats and foreign nationals: the inability to carry their credit history across borders. Through its Verified & Passportable Financial Identity technology, Mifundo enables banks to access reliable credit data on individuals relocating within Europe, improving loan assessments and financial inclusion. This collaboration integrates Mifundo’s solution into Experian’s network, allowing lenders to make more informed decisions while reducing manual verification processes. Covering nearly 70% of Europe, Mifundo is working toward a more unified and accessible credit system across the EU.
Mifundo is pioneering the Verified & Passportable Financial Identity, a technology that allows individuals’ credit data to be securely and seamlessly transferred across borders. Mifundo creates a whole new market category, being the single source for cross-border credit data in Europe. This is a service that is offered exclusively by Mifundo, providing unmatched opportunities for financial mobility across borders.
Experian is a global data and technology company specializing in credit reporting and analytics. Operating in over 30 countries, it provides businesses with data solutions for assessing credit risk, fraud prevention, and financial decision-making. Experian works with various industries, including financial services, healthcare, and automotive, to support lending and risk management processes.
Credit assessments are a crucial but complex process in a lender’s decision when evaluating potential customers for a loan. This process becomes even more challenging for individuals relocating between countries and foreign lenders, since there is generally no financial credit history or data on the individual.
Mifundo’s data technology transcends national boundaries, enabling banks in other EU countries to access credit information on foreign customers.
Mifundo’s solution stands as the only option for banks looking to expand their lending business opportunities and enhance their business potential by securely and cost-efficiently assessing the creditworthiness of foreign nationals or their own clients living abroad, and serving them effectively. Mifundo’s seamless API integration enables rapid deployment and delivers faster time-to-revenue than traditional in-house solutions, lowering operational costs and eliminating inefficiencies like manual document collection and translation.
For example, Romanian nationals, around 43,000 of whom have migrated to Denmark, can now easily transfer their credit history back to Romania. This opens the door to financial services like mortgages and vehicle leases that might have been otherwise inaccessible. With Mifundo’s verified, portable data, an Eastern European bank that recently adopted Mifundo’s solutions can confidently offer more services and grow its business.
“Banks and other lending institutions in the EU use Experian as a source of credit information. We fully support the benefits that Mifundo brings to society. We are delighted to collaborate with Mifundo, allowing EU citizens and expats in the EU the freedom to move to another country without losing their credit history. Meanwhile, lenders also gain higher accuracy and security in their loan portfolios,” says Bo Rasmussen, Experian Northern Europe’s Chief Commercial Officer. “It’s essential for Experian to provide good, trustworthy, and solid data insights to our customers. We work hard for financial inclusion, and the collaboration with Mifundo is a solid anchor in that effort,” he continues.
According to figures from Danmarks Statistik, nearly 80,000 expats came to Denmark in 2023, while almost 20,000 Danes returned home from abroad. The number of emigrants is approximately 50,000 for foreigners and 17,500 for Danes. This is only for Denmark, so the potential impact of this partnership across the EU is extensive.
“Mobility has increased significantly, especially over the past ten years, highlighting the need for better cross-border credit assessments,” emphasises Bo Rasmussen.
Experience from Mifundo shows that banks can reduce credit risk by up to 7 times and increase business volume by 15%.
Mifundo’s CEO, Kaido Saar, comments on the new partnership: “Our goal is to create financial mobility throughout Europe, and the partnership with Experian is a key part of achieving that. With Mifundo’s advanced technology solution, people across the EU will no longer be strangers to banks across borders – their creditworthiness will follow them, no matter where they choose to live in Europe. The same applies to EU citizens and expats who have lived in Denmark and return to their home country.”
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Read the orginal article: https://arcticstartup.com/mifundo-partners-with-experian/
