KPMG takes minority stake in LendTech startup AdviceRobo
Written by Hannah McGrath
Auditing firm KPMG is expanding its digital risk management offering with the acquisition of a minority stake in AdviceRobo, a Dutch LendTech startup.
AdviceRobo is developing a technology that predicts financial risk associated with people and companies who want to take out loans and applies artificial intelligence (AI) analysis on non-financial data including the behavioural patterns of potential borrowers.
KPMG is hoping the tie up with AdviceRobo will offer a tech-driven solution to help clients limit the risks of lending and future-proof their existing risk management.
As a result of the alliance, AdviceRobo will be able to access KPMG’S expertise in the fields of risk management, regulation, data and analytics as well as its global network.
Rob Fijneman, head of advisory at KPMG described AdviceRobo as a “frontrunner” in the FinTech sector and said the alliance with AdviceRobo would enable KPMG to add AI-based predictive behavioural models to their service offering for lenders.
He explained: “AdviceRobo’s models will enable lenders to improve their credit risk models and thus reduce costs, especially in areas where data is the limiting factor.”
Diederick van Thiel, chief executive and co-founder of AdviceRobo, said the company was ultimately aimed at using software and streamlining credit processes to help 4.5 billion people worldwide who have insufficient or no access to loans, because they have little or no credit history.
He added: “The combination of our competency in behavioral psychology and AI software with KPMG’s expertise and experience in the field of risk management, regulations and data analytics will result in new intelligent software products for our joint global client base.”