London-based fintech firm Wiserfunding has forayed into India with the launch of credit risk assessment tool that leverages artificial intelligence, for small and medium enterprises (SMEs).
The firm plans to invest anywhere between $3 and $5m over the next three years to customise credit risk models for SMEs in India.
It plans to link to several public and private databases so that it can automate its models.
By the end of next financial year, Wiserfunding intends to team up with around three to four banks and 10 non-banking financial companies.
Through its models, it intends to tap around 8.5 million SMEs by the end of next year.
In a statement, Wiserfunding co-founder Edward Altman said: “Our mission is to empower the SME growth in India and there isn’t a better time than now. Typical to any economic shock, bank lending is expected to decline for SMEs, making it more difficult for them to survive.”
Altman added: “Indian banks and financial institutions will definitely see significant benefit in using a more independent and unbiased risk assessment platform with the entry of AI-powered models.”
Wiserfunding aims to help lenders and tailor their pricing and increase the efficiency of their lending.
This foray represents Wiserfunding’s first international office outside Europe.
Avantika Goel will serve as India head.