Kraft Bank chooses Tieto's AI solution for processing loan applications
The new Norwegian bank is being launched in the spring of 2018 with the goal of helping customers who have financial difficulties and cannot obtain loans from other banks. Kraft Bank has chosen Tieto's AI solution for core banking to offer end-to-end automated loan processing.
“The goal is for all customers to have good control of their own financial situation and be able to seek normal financing. In order to offer customers good borrowing and savings products, we need good solutions for analysing applications, and we are very pleased to have chosen the core banking solution from Tieto in order to automate as many processes as possible,” says Svein Ivar Førland, CEO at Kraft.
According to the Financial Supervisory Authority of Norway, total consumer borrowing by Norwegians exceeded NOK 100 billion in 2017, and the Financial Supervisory Authority is warning against this trend. Tieto's solution includes end-to-end automated processing for home loans, unsecured loans, debit cards and savings accounts, including Vipps and direct withdrawal. It will make it possible for Kraft to offer customers a broad spectrum of financial services in a cost-efficient, fast and secure manner.
“We are proud to be a part of Kraft's vision of improving the financial climate for Norwegians. This is also an important milestone for us since Kraft is Tieto's first lending customer in Norway, and the agreement will open the door to more customers choosing our lending platform. We have already had expressions of interest in the platform from several firms. The platform is fully compatible with the local statutory requirements and with integrations into the Norwegian banking infrastructure,” says Pedram Tadayon, Vice President for Lending and Finance at Tieto.
The engine for credit rating analysis has built-in machine learning which will provide more accurate decisions. Kraft will have the opportunity through open APIs to make use of a wide range of channels, such as financial institutions and partner banks, and also to utilize third-party FinTech partners.
The leader in the Nordic countries
With installations in 24 different countries and 60 individual banks and credit institutions as customers, Tieto is the leading supplier of lending solutions in the Nordic countries for this segment.
In the process of establishing a head office in Sandnes
Kraft Bank has been granted conditional authorisation from the Financial Supervisory Authority of Norway for the operation of the banking business that is in the process of being established. Once the final authorisation is obtained, there will be a national bank with its head office in Sandnes.
Kraft Opportunities AS is a project company which has developed a new bank in Norway and has obtained conditional authorisation from the Financial Supervisory Authority of Norway for the operation of this bank. When the conditions in the authorisation have been met, the company will be converted to a bank under the name Kraft Bank ASA.
Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers’ first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems. www.tieto.com