i2 invest and ZHAW's Finance and Risk Lab will be working together on providing a proof of concept with regard to a superior and adaptive rating system applicable to both SME and personal lending.
[February 2021, Zurich, Switzerland]. I2 invest is thrilled to announce our collaboration with the Finance and Risk Lab of the ZHAW specifically Dr. Branka Hadji Misheva, Prof. Dr. Jörg Osterrieder, Dr. Jan-Alexander Posth and Dr. Christoph Schmidhuber. The sophisticated team has extensive research expertise as well as practical experience in risk management, asset management and peer-to-peer lending.
Together with i2 invest they are working on providing a proof of concept with regard to a superior and adaptive rating system applicable to both SME and personal lending, able to cope with low-quality, sparse data that is commonplace in the context of P2P lenders. The innovation project will result in both a new methodology for dealing with low-quality, sparse data in the context of credit risk as well as a new product that will complement our existing business.
Furthermore the intention is to use i2 invest’s unique and comprehensive loan data to provide transparency for other market participants and the financial regulators. This will be achieved by providing insights on default and migration probabilities similar to what rating agencies do for traditional credit markets. An enhanced methodology will lead to a sophisticated rating system on both loan originator and borrower level.