JSC “Scorify’s”” R&D activities for development of a new innovative factoring risk assessment system

Project facts

Project promoter:
Scorify(LT)
Project Number:
LT-INNOVATION-0015
Status:
Completed
Final project cost:
€1,062,795
Donor Project Partners:
International Development Norway AS(NO)
International Smart Finance solutions AS(NO)
Other Project Partners
Taurus fondas(LT)

Description

The aim of the project is to create a new innovative factoring risk assessment system (hereinafter - IFRV System), which will have the following exceptional functional features:
1. Application of innovative advance scientific methods
2. Factoring micro-risk assessment; 3. Automated and systematically integrated traditional and alternative data sources; 4. Multi-modular system; 5. Adaptability to development abroad (scalable).

At present, no company in the region has such an extensive and data-intensive system. Factoring service providers using the IFRV System will substantially improve the quality and compliance of their services and thus gain opportunities to increase their competitive advantage in both domestic and foreign markets. Such a financial instrument will enable consumers to improve the movement of working capital, provide opportunities for investment, improvement of service quality and development. The IFRV System is an innovation in the factoring market and by improving the factoring process it will increase the competitiveness of the entire factoring market in relation to other financing instruments.

Partners from Norway will contribute by helping adjusting the product for international market (including scientific, technical, regulatory and IT knowledge) which shall ensure that the product complies with international standards, and product’s scalability is achieved. International Development Norway will provide expertise and consultancy related to development and commercialization of innovations.

Summary of project results

Scorify saw the need to help companies to understand the data (including big data), assess past events, adequately assess the current situation and effectively predict the future and make decisions that allow to achieve a higher level of growth, profitability, greater customer satisfaction and less risk. 

During the project, UAB "Scorify" developed a new innovative factoring risk assessment system (hereinafter – IFRV System), which has the following exceptional functional features:

1. The use of new, advanced scientific methods.

2. Assessment of factoring microrisks.

3. Automated and systematically integrated traditional and alternative data sources.

4. Multimodular system.

5. Scalable.

Scorify developed an innovative factoring risk assessment system that increases the accuracy of factoring companies’ customer behavior predictions using advanced scientific methods. The new risk assessment system enables factoring companies to assess the overall risk of the customer, as well as the risk level of each specific invoice. Both traditional and alternative data was integrated into the solution. Data analysis of such a wide-ranging and comprehensive solution has not been developed either in Lithuania or region till know.

Summary of bilateral results

Partners saw the project as a strategic opportunity to develop joint business activities in Lithuania, Norway and other countries. Different partner models are considered and options with other partners in Norway were identified and onboarded. PArtner from Norway provided ICT- and market-oriented product-and service competence to the project.

Information on the projects funded by the EEA and Norway Grants is provided by the Programme and Fund Operators in the Beneficiary States, who are responsible for the completeness and accuracy of this information.