If you’re a student with no credit history or an expat who couldn’t transfer his credit score to a different country, you should give FriendlyScore a look. It is one of the few companies in the world that has built a reliable credit scoring model based on alternative data such as social media profiles. Even though it’s been on the market for only two years, it is already considered serious competition by players who have spent the last 40 years building credit scoring models.
FriendlyScore gathers raw data from various sources: starting with social media such as Facebook, through transaction data from banks and credit cards, to your phone bills and information from browser plugins. No data is collected without your explicit permission, though. All this information is used to build statistical models of creditworthiness that are constantly verified and improved with machine learning, as 60% of clients provide feedback on how their borrowers behave.
The platform is totally free for individuals. “We want everyone to have a ‘Friendly Score’ that they can use to build their creditworthiness, especially in the case of relocation,” said Emilian Siemsia, the CTO of FriendlyScore. “Credit bureaus need a lot of time to build and adjust their models. If you change your job, for example, it’s not reflected in your credit score for a long time – we know it immediately and react in real time.”
Lenders can implement this product in three variants – a SaaS app, white label or enterprise. The SaaS app is a simple cloud-based service that gives the company access to individuals’ scores, while the white label includes a customized front-end, and the enterprise version – integration support, data analysis and business consulting services.
FriendlyScore has two founders: Emilian Siemsia, the current CTO with broad experience in programming and entrepreneurship, and Maciej Doliński, responsible for customer development, who worked previously in a startup that dealt with microloans. FriendlyScore began in 2014 – it was inspired by Lenddo, the only alternative credit scoring platform at that time. Since participating in Startupbootcamp Fintech London, FriendlyScore found its own way – these companies are no longer competition for each other.
Friendly Score has already been successfully implemented by multiple companies, mostly by alternative credit bureaus, in 14 countries. Still, Friendly Score has some ambitious plans for the future. The team intends to launch a mobile platform and enter Asian markets, especially in India. They also plan to create a variant of FriendlyScore for the Human Relations sector, enabling recruiters to score potential employees basing on their social media profiles.