Libra Internet Bank shows how cross-border credit data improves lending decisions
Romanian diaspora customers are assessed using cross-border data, improving approvals and reducing risk for banks.
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Foreign-resident customers are often assessed with incomplete data. Many have stable income, active accounts and a proven credit history, but in another country. When applying for credit in their home market, that information is not visible.
This leads to conservative decisions or declined applications.
Libra Internet Bank is addressing this by using cross-border credit data through Mifundo.
Turning fragmented data into usable input
Credit data across Europe exists but is fragmented by country. Bank statements add complexity, as income and obligations sit inside raw transaction data and require interpretation.
Through Mifundo, Libra combines verified credit bureau data from the country of residence with categorised bank account data. The result is a structured and standardised financial profile that can be used directly in credit assessment.
This reduces variability, manual work and decision time.
Impact on risk and lending growth
When foreign-resident customers are assessed on complete credit histories, their risk profiles can be significantly lower compared to evaluations based only on domestic data.
For banks, this translates into:
- higher approval rates without changing risk appetite
- faster decisions with fewer manual steps
- better use of an existing customer segment
Foreign-resident customers typically represent 10 to 15% of bank portfolios, yet remain underutilised due to missing data.
Romanian diaspora
Libra applies this approach to Romanian customers living abroad. The bank can assess applicants based on their financial behaviour in other European countries and the United Kingdom.
This is particularly relevant for mortgage lending. Customers earning income abroad can apply digitally and are evaluated using verified financial data from their country of residence.
Aligned with regulatory direction
The revised Consumer Credit Directive (CCD2) requires creditworthiness assessments to use complete and relevant information, including data from other EU member states.
Libra Internet Bank already applies this in practice. Cross-border credit data supports more accurate risk assessment while enabling lending growth without lowering credit standards.
