ITSCREDIT’s João Pinto on the Digital Lending Opportunity

ITSCREDIT CEO João Pinto

We recently spoke with ITSCREDIT CEO João Pinto. Founded in 2018, ITSCREDIT is a spinoff from ITSECTOR and is a fairly new player in the digital lending space. The Portugal-based company focuses on placing the consumer in control of the lending experience by making the entire process digital.

In this interview, Pinto talks to us about the digital lending opportunity, how his company fits into the current state of this fintech subsector, and what we can expect to see next.


Finovate: There is a wide range of borrowers out there– some who may not be comfortable on digital channels and others who are digital natives. How does ITSCREDIT adapt to this variety?

João Pinto: The main focus of ITSCREDIT is to evolve the lending process so that different types of customers can perform all lending origination actions using online channels. Our aim is that the customers can perform all origination operations online with minimum data input. We do this by retrieving necessary application information from various systems (personal data, financial data, and so on). Our approach to digital lending is to provide processes that are intuitive, attractive, simple, and fast in an online environment to revamp many of the bureaucracies often associated with traveling to the banks’ physical branches.

The customer can access the ITSCREDIT platform via online channels, such as mobile and internet. ITSCREDIT provides interfaces for other channels, as well, such as branch, contact center, and backoffice, which all have access to the client and their application process. This means that the client can start an application in any channel and get information or advice and can continue the process in any other channel. This way, more traditional users that are not as comfortable using digital channels can use traditional channels either in an isolated way, or– more interestingly– in a combined way. The multi-channel approach offers them full control of their application.

Finovate: How does ITSCREDIT underwrite credit risk and how does that approach differ from incumbent players?

Pinto: The ITSCREDIT platform contains four main modules: Flowcredit (Loan Origination), Calculators, Risk Analysis, Scoring, and Collections. Each can operate in isolation or can be combined in any way. Also, the platform is open so that implementations can use as much data as is available in order to have a more complete view of customers and their financials. We believe this is a huge strength of the platform. It allows banks to garner richer information for the risk analysis from both individuals and corporations (through Risk Analysis and Scoring modules), and also makes data available from credit applications processes (through Flowcredit).

In many situations our clients have, in the past, invested heavily in building their credit application analysis. The Flowcredit module easily integrates with such systems and then adds additional information and rules to make underwriting even more accurate and tailored to suit the financial institution needs.

Finovate: Tell us about the role that open banking plays in ITSCREDIT.

Pinto: As we mentioned previously, one of our strengths is that the ITSCREDIT platform is open so that implementations can use as much data as is available in order to have a more complete view of customers and their financials. In this scenario, open banking is a key element. It not only makes much more data available from different players, but also makes integrations much easier.

On the other hand, our platform is based on a services architecture, so that it exposes services that can be consumed by third party entities. For example, the use of calculators and loan origination components can easily be used in different commerce sites and therefore originate completely new lines of business for the institutions. For example, a travel agent can have a payment method on their website for their clients based on a personal loan.

Finovate: Looking broadly at the credit and lending industry as a whole, what changes do you anticipate 2020 will bring?

Pinto: In the past years we have seen financial institutions start to approach digital lending for their clients. This journey is still in its early stages, with few institutions providing such functionalities for a few products. We are sure, though, that in 2020 we’ll see more institutions adopting full digital lending with simpler models more adequate to their clients needs. The launch of PSD2 in Europe and other Open Banking initiatives around the world make it much easier to obtain personal and financial data from credit applicants and therefore make the loan origination simpler and faster.

The other area that we foresee a great expansion is through a space we refer to as dPOS (digital Point-of-Sale). A dPOS enables merchants to provide payment methods for their ecommerce platforms with digital lending, providing lower rates on credit cards for end customers and a lower cost and even extra income for merchants.

Finovate: What’s next on the horizon for ITSCREDIT?

Pinto: ITSCREDIT is a spin-off that will be 2 years old in May. We already have 13 clients on three continents: North America, Europe, and Africa. Our journey on the commercial side is to present the advantages of our solutions to more institutions and get more implementations.

In terms of product evolutions, we are enhancing the digital lending capabilities and models and launching new versions in 2020 for brokers and merchants.

Overall, our big aim is to position ourselves as a world-class player for credit solutions, providing innovative and modern solutions for our customers to help them differentiate from their competitors and become more efficient with higher loan volumes.


You can watch ITSCREDIT demo its latest technology on stage at FinovateEurope next month. Register now to save your seat!

If you’re interested in demoing on the FinovateEurope stage this year, reach out to heather@finovate.com or take a look at our event page for more details.

Fintech, Financial Services and the Case for 5G

Photo by panumas nikhomkhai from Pexels

There were more than a few provocative presentations at FinovateAsia last fall. And Celent’s Dan Latimore was the man responsible for delivering one of them. Latimore, who is Senior Vice President of Celent’s Banking group, weighed in on a topic that is increasingly on the minds of technology analysts inside and out of fintech: the impact of 5G (which stands for “fifth generation wireless”) on financial services.

“Banks need to think about the implications of being able to access really heavy compute power remotely and centrally, whether it’s over the cloud or on premises,” he said during his presentation on 5G late last year. “What that does is turn every device into a thin client- which will have some very interesting implications.”

Dan Latimore returns to the Finovate stage next month in Berlin for FinovateEurope. He will host an afternoon interactive Q&A session titled What’s Hot: Money Disrupt on February 11, and later will share his views on “What’s Hot & What’s Not in Fintech” as part of our Analyst Insight showcase on February 12. Check out our FinovateEurope conference page for more details.

Calling 5G “something banks aren’t even thinking about,” Latimore said, “we believe the effects of 5G are going to be subtle and profound over time.” He dared indulge the “superhighway” metaphor – previously coined to describe the rise of the Internet in the late 1990s – to compare the potential of 5G with its predecessor technology 4G (to say nothing of the “dirt road” that was 3G). Relative to 3G, he noted, 5G’s “fiber over the air” approach represents a 26,000x improvement in speed, as well as major improvements in capacity and latency (“the time it takes for the stimulus to create a response”).

For reference, the first commercial 3G networks were introduced in 2000. The first commercial 4G networks were introduced less than ten years later in 2009.

While it is generally (though not universally) acknowledged that 5G will represent major opportunities for innovation in a variety of industries – from entertainment to autonomous vehicles to the Internet of Things (IoT) – many observers have overlooked the potential impact of 5G on financial services. Because 5G will enable mobile devices to serve as thin clients which can simply “point back” to the backend server, Latimore explained, banks will be able to leverage massive computing power to provide everything from centralized updates and better contextual advice to personalized interfaces on ATMs.

To this point, Latimore indicated that 5G would be one of the key avenues toward a post-smartphone future, as well. “Don’t forget about wearables,” he warned, “because that’s now a thin client that can be a much more viable way for people to interact with their bank, probably activated by voice.”

Check out more from Dan Latimore on 5G, including the shift from hardware spend to data spend, how institutions can negotiate the transition from 4G to 5G, the potential for new security challenges, and more. Celent subscribers can access his report. To see his presentations live next month at FinovateEurope, visit our registration page and pick up your ticket today.


Demo spots for FinovateEurope are still available! If you’re a fintech company with innovative, problem-solving technology, FinovateEurope is your opportunity to show the world!

Contact our Event Team today for more information on how to join us on stage as a demoing company at FinovateEurope next month in Berlin!

The Digital Identity Infrastructure and What it Has to do with Fintech

The last decade brought about a lot of discussion around digital identity. Dozens of security companies created new solutions to help banks authenticate their user’s identity and verify their personal information. Throughout the years, those authentication methods have evolved from comparing a simple selfie with a picture of a driver’s license, to tracking how a user navigates a web page, to assessing their online footprint.

Lately, however, the topic of conversation has shifted from authenticating digital identities to creating a digital identity infrastructure. But what exactly is a digital identity infrastructure and why is it important in fintech?

What is digital identity infrastructure?

Digital identity infrastructure is the set of processes a company has in place to verify users’ digital identities and manage their access. This infrastructure is especially important for banks and fintechs who host their information in the cloud, are frequently increasing the amount and types of information gathered, and are often times moving fast.

Why is digital identity infrastructure important in fintech?

This is where identity infrastructure comes into play– it helps companies scale faster and more simply. Creating a methodology around identity verification helps organizations leave behind a siloed approach in favor of a more holistic methodology that is consistent with the framework of the rest of the company.

What does the industry have to say?

David Birch, a well-known thought leader in the fintech industry, talked to us about digital identity last year at FinovateEurope. He laid out a handful of ideas on the subject, including his thoughts on creating identities for non-human objects such as robots. Some of the topics Birch discussed include:

  • The need to develop a framework around digital identity, including its definition
  • How banks should be responsible for developing the infrastructure around identity
  • There will be a future where robots will need passports

You can catch the full interview below.

Birch takes the stage at FinovateEurope next month to discuss how digital identities will be a game changer in the war against financial crime. He will also speak on a panel discussing which new technologies will transform financial crime and what an enterprise-wide financial crime risk assessment should look like.

Still need your ticket to FinovateEurope? Book now and we’ll see you in Berlin on February 11 through 13. If you register before this Friday, you can save up to £1,000.