CRIF combines data, processes and tools that use AI and microservice technologies for a forward-looking assessment of companies, integrating ESG criteria as a new driver for financial and non-financial sustainability
by Elisa Castrignanò and Edoardo Agnoletto, Business Development Manager and Global Solutions Strategist at CRIF
Financial players, in part driven by the ECB, have intensified their forward-looking Cash Flow Analysis; Basel 3 obliges them to consider the expected risk and the ability of counterparties to meet their financial commitments. It is not simply enough to know the current standing of companies (corporate or retail), but it is essential to predict developments, considering sector dynamics and competitive positioning. Analysis of official sources, such as full or simplified financial statements, must be integrated with environmental, social and governance (ESG) parameters, which present both a challenge and an opportunity for companies. The result will be a more comprehensive and compelling strategy for stakeholders, clients and the market as a whole, attracting investment and promoting sustainable development.
Forward-looking analysis has become an essential driver for improving reliability and predicting impacts on financing and investment, as well as for mitigating reputational risks and optimizing employer branding.
In the financial sector, investors’ focus on sustainability highlights how such practices minimize operational risks, opening the door to innovative business opportunities. With this in mind, the forward-looking analysis including ESG aspects provides a further level of evaluation for optimum capital allocation, improving the assessment of companies and therefore their access to markets.
In the non-financial field, the adoption of sustainable practices – such as the use of digital, paperless technologies and the application of carbon neutral policies – allows businesses to enjoy a new positioning, certainly more in line with market developments, consumer expectations and the 2030 goals. A focus on resources, the reduction in pollutant emissions, and commitment to the community are not just moral obligations, but translate into distinctive qualities that add value to a company’s actions, with credit institutions leading the way in this transition.
Thanks to its distinctive asset mix (CRIF Metadata), CRIF has developed a forward-looking assessment solution comprising the innovative use of data, processes, models and tools that, through the application of AI engines and Machine Learning algorithms, places it among the leaders in monitoring the Italian banking system. The CRIF forward-looking solution enables financial players to anticipate risks and determine market opportunities, offering a forward-looking view of the actual solvency status of customers, also in line with the criteria set out in the 6 pillars of Italy’s National Recovery and Resilience Plan. The adoption of microservice technologies and the possibility of cloud deployment enhance the potential uses. This enables institutions to implement forward-looking analysis effectively and easily as part of their assessment processes, not only to respond to the principle of “sound and prudent management”, but also to develop a new, informed arena for discussion that will certainly advance the credit sector and foster business growth.
Source: Data Manager Magazine
