Hokodo taps up Fuse to implement AI-powered credit options

Digital trade credit solutions firm Hokodo has partnered with AI transaction analytics firm Fuse to enhance its credit offering to businesses in the UK.

The partnership aims to empower businesses to access more personalised credit options by combining Fuse’s credit risk and Income Verification tools with Hokodo’s B2B lending capabilities.

Using Fuse’s tools, Hokodo will offer finance options to businesses that were previously excluded from credit who are often not scored by traditional credit bureaus and struggle to access credit. 

By utilising customer income verification via Fuse’s innovative tools, Hokodo has streamlined the process for existing customers to expand credit lines by analysing repayment patterns on previous loans.

Nicolas Rabinovitch, Director of Data Science & Fraud at Hokodo, said: “Fuse provides us with the Open Banking data we need to make better risk decisions, offer credit to more buyers and understand buyer behaviour in a B2B context. 

“We are now offering sole traders another path to get approved, and Fuse is helping to support these risk decisions. Ultimately, this empowers a greater number of small and micro businesses to access the credit they deserve.”

Over the past several months, Hokodo has announced a number of partnerships including collaborations with BNP Paribas, Citi and payment service providers Mangopay and Lemonway.

The B2B BNPL lender is the latest to partner with Fuse to enhance its credit decision-making. Other partners include education lender, Knoma, selecting Fuse as its Open Banking partner.

Sho Sugihara, CEO and Co-Founder of Fuse, added: “Hokodo is shaking-up the B2B payments space and providing businesses with alternative credit options and we’re proud to support this mission to improve the business finance market. 

“By utilising AI transaction analytics, Hokodo can now unlock access to additional funding streams for thousands of businesses, as well as support groups such as sole traders who are typically excluded from mainstream credit options.

“By improving decision-making and offering more personalised credit products with lower risk of defaults, Hokodo can provide the financial support needed for businesses looking to kickstart their growth by utilising their innovative BNPL product.”