In the fast-moving BNPL sector, risk decisioning that’s accurate and based on real-time information is essential. Equally important is the ability to adapt and comply with a changing regulatory landscape.

The technology BNPL providers select today must be flexible and agile to support the entire customer lifecycle as well as a changing regulatory and compliance landscape. An AI-powered, purpose-built risk decisioning platform can help you make more accurate decisions throughout the customer lifecycle and allows you launch quickly and see value from day one. Let’s take a look at the benefits of BNPL for consumers and merchants.

Serve consumers

For consumers, the option to choose how they want to pay and the ability to spread out payments can be really helpful. It can also help with financial inclusion, as people who might not have access to traditional forms of credit can still get access to credit. Additionally, lower interest rates are another benefit for consumers.

Increase sales

Merchants are always searching for ways to improve customer loyalty and increase sales.
BNPL technology gives businesses the flexibility to offer consumers an alternative to credit cards or other payment plans, making it easier for customers to make larger purchases. It also helps businesses boost overall sales and average order value while reducing cart abandonment. This flexibility can help businesses attract customers and keep existing ones coming back.

The Value of an AI-Powered Risk Decisioning Platform

Artificial intelligence (AI) has the potential to revolutionize risk decisioning. By automating the process of gathering and analyzing data, AI can help businesses make more informed decisions about risks since it can help identify risks that they may not have considered before.

“We help fintech and financial service providers to make smarter decisions faster and we do that with our AI-powered risk decisioning platform. Our innovative software helps organizations make powerful decisions throughout the customer lifecycle – from onboarding new customers to improving the customer experience. With our easy-to-use platform, companies can drive better decision-making and improve their overall operations,” says Frode Berg, Provenir’s General Manager for EMEA.

“We provide the leading buy now pay later providers across all continents with universal access to data through the Provenir Marketplace, simplified AI and world-class decisioning technology so they can deliver superior consumer experiences.”

Frode Berg, General Manager EMEA, Provenir

“This is how we power the leading buy now pay later providers across all continents. We provide them with universal access to data through the Provenir Marketplace, simplified AI and world-class decisioning technology so they can deliver superior consumer experiences,” adds Berg. Provenir’s ‘no code’ technology is perfect for risk management teams as it eliminates the need for coding knowledge and expertise.

“Systems that use no code and drag-and-drop user interfaces can empower risk teams to update processes and models more effectively and quickly. For example, if a regulatory change requires a coding change from the IT team, the likelihood of the change being made in a timely manner is lower. However, empowering risk teams to update processes and add in new data sources themselves within the drag-and-drop low code system is key to making changes in the systems on the fly,” remarks Berg.

Empowering Innovation

Data is the key to unlocking hidden insights and making better decisions. With Provenir’s platform, you can track model performance, monitor KPIs, and use real-time decisioning data to identify innovation opportunities. “For BNPL providers, it is critical to have a flexible AI-powered platform to access the data needed, implement the right processes and models, and make decisions in accordance with regulatory requirements. A key benefit of using an AI-powered model is that it gets smarter with each transaction it processes so your AI models use real-time data to identify new patterns, learn, and adapt accordingly.

The more you use the model, the more you will tune it to the regulatory requirement, and the better it will adapt to those requirements. At Provenir, we pride ourselves on offering a unique solution that is powered by AI. Our software is user-friendly and designed to facilitate quick, secure transactions. Our platform provides users with access to all the data they need in one place, making it easy to get the information they need,” concludes Berg.