The Lithuanian firm bringing AI/ML to scoring

Okredo’s new scoring system will use high-quality data about SMEs that will allow customers to efficiently project, assess and manage credit risk.

Vilnius-based start-up Okredo, a company specialising in open data solutions, this week secured 1.2 million euros funding from the European Union for the development of a multi-modular artificial intelligence (AI) and machine learning (ML)-driven scoring system valued at 1.5 million euros.

Once implemented, the scoring system will have the capability to score 30 million EU companies, providing AI-based insights and support for businesses, fostering business growth across European and global markets.

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The new scoring system will use high-quality data about SMEs that will allow customers to efficiently project, assess and manage credit risk. The solution aims to facilitate business growth by reducing costs and improving the quality of credit scoring and customer lifecycle management.

The new tool will leverage machine learning methodologies to analyse the data of over 15 million companies across the Baltic, Polish, and UK markets.

Gradually, the company plans to expand this system by integrating data about 15 million SMEs from other European countries. By examining extensive data from various sources, AI will learn to identify errors, fraud risks, and the strengths and weaknesses of SMEs’ financial conditions.

In addressing the existing market solutions, Gerda Jurkonienė, CEO of Okredo, emphasizes that while many scoring systems and models are available, none offer AI-driven insights into the financial strengths and weaknesses of SMEs.

“Our AI-based solution acts as a financial assistant for SMEs, identifying necessary actions to enhance their financial health and improve credit scores. We refer to this approach as ‘creditdoctorship’,” she explains.

Potential to scale beyond Europe

The development of this multi-modular scoring system is expected to take approximately two years. While the initial focus is on the European market, there is a significant potential to scale this product beyond the EU in the future.

The primary users of the tool will be SMEs, who will leverage it to increase their financial literacy and inclusion, thus gaining better access to finance. Existing clients including international enterprises, governmental and financial institutions are also expected to adopt the tool to mitigate credit and fraud risks and to enhance their sales potential.

Okredo’s strategic goals for the near future are twofold. As a company, Okredo aims to become a leading European open data platform. The new project will accelerate the company’s ability to aggregate and validate data more efficiently. Regarding the project itself, the goal is to develop a robust AI/ML-driven system that enhances the financial health of SMEs across Europe.

“The role of AI in our industry is becoming increasingly important. It aids in collecting, processing, analysing, and leveraging data in various ways, including fraud and error detection, automation, and data visualisation,” Jurkonienė notes.

“AI enhances the value derived from data by making data processes more efficient, accurate, and insightful, thus driving better decision-making and innovation.”

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