How AL Finans decreased defaults & remained competitive in the face of increasing regulations


AL Finans is known as a market leader in Denmark for its attractive and flexible consumer loans, and unrivalled customer satisfaction. 

However, when new legislation on creditworthiness came into force in Denmark in 2021, all Danish lenders were forced to gather more in-depth financial information, meaning extra paperwork and lengthier loan application processes. Not only would this mean extra work for employees, but it could also increase the likelihood of applicant drop off due to this cumbersome process. 

AL Finans, therefore, needed a solution that would enable them to continue providing a quick and easy service to applicants, while ensuring responsible lending. 

Because AL Finans helps hundreds of car dealers across Denmark provide consumer loans, they also needed a system that their dealership employees could get to grips with quickly and easily. 

The solution

Monthio’s intuitive creditworthiness solution uses open banking & other financial data to provide a 360 financial overview in real-time, including income and expenses verification and extensive insight into risks and warnings. 

All the consolidated data is presented in one easy-to-use dashboard meaning quick and easy decision making for credit advisors. 

The results

AL Finans was able to meet the new legislation on lending while continuing to offer the same level of loan approval speed and customer experience as before. This was despite the significant increase in regulatory requirements needed to process loan applications. In addition to this, the introduction of Monthio decreased the number of defaults dramatically.

The intuitive and appealing user experience of Monthio’s solution also meant that AL Finans saw a quick buy-in from their dealers across Denmark.

Head of Credit, AL Finans

Jesper Jensen

“We initially partnered with Monthio to ensure that we were compliant with the Consumer Loan legislation in Denmark. Implementing the solution has enabled us to process the same amount of loan applications despite the increased requirements. The solution also gives us deeper applicant insight ensuring even more accurate decision making and easier documentation. Even if there was no legislation regarding credit decisioning, we would still partner with Monthio as we see their solution as an invaluable business resource.”

AL Finans is one of Denmark’s leading players in consumer loans and we are delighted that they have been able to see such positive business results since partnering with us. AL Finans have also reported their deep satisfaction with Monthio’s customer service team, as well as our agility in tailoring our solution to their needs.

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