(Alliance News) - doValue Spa and Cardo AI, a fintech specializing in the development of technology for structured finance, announced Tuesday a strategic partnership for effective and proactive management of Stage 2 loans, i.e., those categorized as performing but with increasing riskiness.

The exclusive partnership focuses on specialized monitoring of Stage 2 loans for the purpose of assisting banks through proprietary models for dynamic risk management and default prediction.

Data are integrated with traditional and alternative external sources for a comprehensive and up-to-date view of the financial health of households and businesses.

"This innovative approach enables early detection of emerging trends and more informed decision-making based on a wide range of unconventional indicators," doValue points out in a note.

From this data, predictive models are then developed to estimate and recalculate portfolio risk and cash-flow metrics, leveraging artificial intelligence algorithms.

These models make it possible to guide the most appropriate management strategies in relation to individual customer types.

"In line with doValue's 2024-2026 business plan, which aims at a more widespread and pervasive use of technology to increase process efficiency as well as a diversification of its business with respect to Non Performing Loans, the partnership with Cardo AI is part of a broader collaboration between the two players that currently has new products and services related to credit management under study," the company specified in the statement.

"Our partnership with Cardo AI represents a crucial step in doValue's strategic growth plan, geared toward greater diversification in credit segments beyond NPLs and the adoption of advanced IT solutions to optimize our processes," comments Manuela Franchi, CEO of doValue.

"We firmly believe in the added value of a proactive and technologically advanced approach to Stage 2 credit management. We are convinced that by combining doValue's expertise in credit management with Cardo AI's skills in developing financial artificial intelligence models, we will be able to significantly improve asset quality and profitability in the banking system," Franchi concluded.

DoValue's stock closed Monday flat at EUR2.01 per share.

By Chiara Bruschi, Alliance News reporter

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