How Facio reduced credit risk in 50% with Belvo
Case of useCredit
GoalReduce credit risk
The company that delivers salary advancements in 2 minutes
The search for financial well-being has never been higher. Having one’s income compromised can cause high levels of stress for individuals and families, compromising mental and physical health, work, and relationships. One of the most effective solutions to help with this problem is access to appropriate credit options, such as salary advancements.
Facio is a pioneer in this solution in Brazil, working towards the goal of improving the financial health of workers in the country. The app offers the option to get a salary advance in a simple and accessible format: through Facio, a person can access up to 20% of their next salary at any point of the month, for a small fee. When payday arrives, Facio automatically debits the value from the user’s account.
Lowering operation risk and improving offers
When Facio first began its operations, payroll loans were tied to employers, who had to access payslips to understand salary value and payday, as well as organize how to collect the value that would be lent to the employee.
But connecting to the financial system of companies was a dull process, and Facio started to look for alternatives to change this scenario and focus all operations on the hands of employees.
Through automatic debit, workers can now conduct all the processes independently: they just need to connect their checking accounts to access the advancement and process the payment automatically on their payday. But there was one problem still: all of this still relied on the manual input of payment information, like payslips, bank extracts, etc.
Through Belvo’s Open Finance solution, Facio was able to cut off unnecessary bureaucracy and speed up the process even more. Now, users don’t have to manually submit their information, and everything is done automatically. Also, the financial data users share provides much more complete insights to Facio, allowing the company to improve its credit analysis.
The app uses Belvo to continuously access account information to:
- Confirm user identity
- Estimate payment capabilities
- Learn if the customer has a steady income
- Identify value and day of salary payment
- Evaluate the customer’s debt profile
- Improve credit risk analysis
During the documentation process, Facio asks users to connect their bank accounts for faster analysis, and uses Belvo’s widget to make this connection.
Users connect their accounts securely through their bank credentials. Access is done in read-only mode and follows the strictest security protocols available.
And that’s it! Belvo establishes a connection in seconds and Facio is able to access the necessary data to verify information and conduct risk analysis.
50% reduction in credit risk and a better UX experience
Over 12 thousand people have connected to Facio through Belvo until now. By accessing information such as income, transactions, accounts, and extracts, Facio was able to improve its credit risk process. The result was a 50% reduction in the company’s credit risk.
At first, we would only have access to data if the company provided it. Now, it is a direct decision from the employees to share their information, and we are also able to access how much and how fast they spend from their salaries, which helps us with credit input.