Nordigen has been invested in by Change Ventures, to the tune of EUR 150,000 to expand to more European banks.
Nordigen has its transaction categorization technology in place and is ready to scale to bigger markets. Change Ventures believes they have what it takes, and has finalized a EUR 150,000 seed investment to make that happen.
With the European Union's PSD2 (Payment Services Directives 2) taking effect January 1st 2018, Nordigen is in a prime position to leave a big impact on banking services.
Nordigen's product is transaction categrization and evaluation software that lets banks automatically evaluate the risk of a potential loan recipient, based on their transaction history. This is a function that is still done by most banks manually, and can take an employee at least half an hour to reach an often imprecise conclusion. This way, Nordigen is able to generate more loan clients for banks without an increased risk.
The product is particularly helpful in the face of the PSD2 directive, which states that individuals will be able to elect to share their banking data with third parties. One such type of 3rd party will be lending institutions. Nordigen will be able to help these lending institutions help make sense of the newly incoming data and process it to lead to a beneficial outcome, both for the bank, as well as the individual seeking the loan.
Rolands Mesters, Managing Director of Nordigen, has stated that the seed investment will be used primarily to develop a sales team to implement their software in more banks across Europe. “With large banks already expressing interest in our product, it's certain that as the EU directive takes effect, we won't have enough capacity to handle the demand.”
Nordigen is currently working with over 30 lending institutions, including Citadele Bank (American-owned bank in the Baltics), IPF Digital (part of the UK-based International Personal Finance plc.) and Prestamos Prima (co-owned by Finstar Financial Group).
“I met the two founders of Nordigen, Rolands and Roberts, back in 2015 soon after they had started the business out of TechHub Riga’s co-working space. Their passion, knowledge and energy was immediately apparent. They asked good, hard questions, listened to advice and have made great progress ever since. I introduced them to their first larger bank client and saw that relationship flourish and grow. Now they meet with potential customers and simply lay down a challenge: Nordigen will prove with real customer data that their solution will result in better credit decisions and improved profits. When the team let us know it was our last chance to invest, we jumped on it.”
Nordigen is currently looking for excellent sales people, python-developers, and welcomes any interest from lending institutions. They can be contacted at email@example.com.