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Torpago partners with Heron Data to 25x underwriting speed02 Nov 2022

Brendan Coons is the Director of Risk at Torpago, a disruptive financial technology solution empowering companies by modernising their credit and spend management. Torpago chose Heron Data to empower their Credit team to maximise their revenue and decrease losses by enriching banking data for their underwriting and portfolio management processes.

Outcomes Achieved

  • 50% Increase in Revenue resulting from dynamic limit setting
  • Up to 96% Underwriting Time Saved from "received" to "approved"
  • Decreased Delinquency Rates Below 1% for 2022 approval vintage, by:
    1. More accurately assessing applicants in the initial underwriting stage, by rejecting cases of suspected fraud and underwriting to a higher cash coverage ratio (increased by up to 10x)
    2. Monitoring the portfolio to decrease credit limits and exit earlier, for customers whose financial position is degrading

The Challenge

Prior to using Heron, the Torpago team was restricted in three key ways:

  1. Low Data Diversity: A low number of key financial data points they could utilise to make a decision for their applicants’ non-Torpago accounts
  2. Manual Summaries: Everything needed to be manually pulled together into a spreadsheet to recreate a simple cash-based P&L, which required a high level of manual effort for non-ideal results
  3. Hard to Monitor Over Time: Portfolio monitoring and dynamic limit setting was difficult, as manually pulling and manipulating the data was very cumbersome

The Solution

Now, Heron Data enables Torpago to lend with much greater confidence, due to:

  1. Wealth of Data: A multitude of powerful calculated metrics and enriched financial data points displayed in Heron
  2. Automated Cash-based P&L: Creation of an automatic cash-based P&L “takes literally a matter of seconds” and enables the team to fully understand and assess the company’s financial position prior to making any credit decisions
  3. Easy and Powerful Portfolio Monitoring: Heron enables tracking of Torpago’s book of business performance over time, enabling dynamic limit setting. This allows Torpago to maximise gains for customers whose finances are improving over time and minimise losses by exiting early for customers whose position is degrading

Get in touch

If you want to expand your addressable market to any business with a bank account, reduce the time it takes you to make a credit / fraud decision, build in portfolio monitoring, or offer a variety of other market-leading money experiences like transaction enrichment, get in touch! We’d love to support. Email [email protected] or book a demo.