Credit is a significant force in the global economy, yet it is often misunderstood. Over 70 per cent of worldwide economic transactions rely on credit, and over 95 per cent of our daily currency circulation is generated by the banking system through credit.
The digital era has emphasized the need to reevaluate the current credit paradigm due to its complexity, costs, and challenges in financial inclusion. With 3.8 billion adults globally lacking access to banking services and a significant shift in customer expectations driven by digital-native generations, there is a growing demand for innovative credit solutions.
Fairtile specializes in addressing these challenges as a credit intelligence and automation platform, developing a modern hybrid multi-cloud solution. Founded in 2016 by Corrado Giannasca, Cristiano A. Motto, Giuseppe Riccardi, Guido Ferrari, and Olle Ahnve, this Italian fintech startup leverages big data, human science, and AI to deliver real-time intelligence and automation at scale.
Product portfolio and innovation
As a B2B company, Fairtile focuses on enabling financial inclusion and sustainability through its credit intelligence and automation platform, employing data and AI to assist lenders in making informed decisions and optimizing their processes.
The solution aggregates millions of data points from various sources, including devices, digital footprints, open banking, SME systems, etc. Adhering to the European Union’s (EU) General Data Protection Regulations (GDPR), the platform creates a comprehensive 360-degree customer view, enhancing decision-making with advanced AI algorithms. The solutions cover credit scoring, fraud prevention, Environmental, Social, and Governance (ESG) rating, and debt collection.
Its account receivables automation solution, Debbie, engages debtors through a versatile conversational interface across multiple channels (voice, WhatsApp, SMS, email, chats) and facilitates payments through an embedded gateway. This allows debtors to choose their preferred payment method and complete transactions digitally during the conversation.
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“We are developing a secure, generative AI virtual agent powered by a large private language. To meet the needs of enterprises, Fairtile acts like a subject matter expert assistant who is always available, learns over time, and finds the most relevant information to better service customers or automatically resolve problems,” said Motto, CEO and Co-Founder.
He added, “Usability and interface models are key. We are creating a virtual agent architecture that provides a variety of interfaces for smart conversations. This includes an open smart virtual agent API set that can be used by customers or partners to construct bespoke interfaces. Other interfaces under consideration include a plug-in virtual agent widget for quickly accessing agent-side and back-office applications.”
Fairtile’s three-tiered SaaS revenue model
Fairtile operates on a SaaS revenue model, which has remained consistent since its inception. All solutions are delivered to customers through an API layer.
The model follows a three-tiered structure, offering various price points for different solutions.
- Set-up fee: A one-time fee during the account registration, ensuring regulatory compliance with segregated towers in the infrastructure.
- Service fee: All solutions operate on a SaaS model, with a standard price per request as the service fee. Customers are charged a standard fee each time they utilize our APIs.
- Annual fee: This fee covers annual maintenance, ensuring the customer receives the required SLAs. Different organizations may require varying service levels.
Custom packages are available for specific customers with unique needs or high-volume requirements.
“We trust the best way to serve our customers is to provide them that maximum result with the minimum effort. We have designed our solutions to ensure a seamless and frictionless integration that does not require heavy and complex implementations on their side,” added Motto
Growth and partnerships
The company began its journey before the COVID-19 outbreak, initially self-funded with contributions from co-founders and support from Betacom, an IT company in Italy, Switzerland, and Germany.
“We survived with no funding or debts, just with our revenues and robust and smart management. 2022 has been the year of the restart. We have signed the co-development and commercial partnership with Experian and revamped our growth. The validation of our solutions with the Bank of Italy, the partnership with Visa and new customers have brought us back to the position to run a round on the market,” Motto said.
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A few weeks ago, the company announced an investment from Intesi Group, a leading company specializing in onboarding solutions.
The firm is currently in the midst of its fundraising round. It seeks 5 million EUR in funding on 20 million EUR of valuation, with a portion already secured, to support its expansion in the Europe, Middle East, and Africa (EMEA) and the commencement of operations in APAC. The flagship office in Singapore was launched at the end of 2022.
As much as 60 per cent of the investments will be allocated to structure, operations, and technology, while 30 per cent will be utilized to strengthen marketing and sales through resources and activities across EMEA and APAC.
Fairtile also participated in the Global Startup Programme organized by the Italian Trade Agency and the Ministry of Foreign Affairs and International Cooperation.
“Throughout our journey, we’ve always valued building partnerships for success. We’re creating a strong network of digital credit solutions by partnering with various organizations and institutions to push the boundaries of technology in the credit sector.”
Fairtile is concentrating on sustainable finance and ESG for their next solution.
The fintech sector, acting as the primary driver of the global economy, is at the forefront of structural changes. Fairtile positions itself as a leader in addressing the evolving needs of the financial services sector, contributing to growth, risk mitigation, and regulatory compliance through a focus on sustainable finance and ESG.
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