Experian, a global data and technology company headquartered in Ireland, has partnered with Mifundo, a fintech company based in Estonia, to improve cross-border credit assessments within the European Union.

Mifundo has developed the Verified & Passportable Financial Identity, a technology that enables individuals to securely transfer their credit data across borders.

The company positions itself as the sole provider of cross-border credit data in Europe, allowing financial institutions to assess the creditworthiness of foreign nationals or clients living abroad.

Credit assessments play a key role in lenders’ decisions when evaluating loan applications.

This process is particularly challenging for individuals relocating to a different country, as financial institutions may not have access to their credit history.

Mifundo’s technology addresses this issue by allowing banks in other EU countries to retrieve credit information on foreign customers.

For example, approximately 43,000 Romanian nationals living in Denmark can now transfer their credit history back to Romania, improving access to financial services such as mortgages and vehicle leasing.

An Eastern European bank that recently adopted Mifundo’s solution has been able to expand its offerings with greater confidence.

Covering nearly 70% of Europe, Mifundo’s system integrates with banks through an API, reducing operational costs and eliminating inefficiencies such as manual document collection and translation.

The company reports that banks using its technology have reduced credit risk by up to seven times and increased business volume by 15%.

Bo Rasmussen, Chief Commercial Officer of Experian Northern Europe, stated:

“Banks and other lending institutions in the EU use Experian as a source of credit information. We fully support the benefits that Mifundo brings to society. We are delighted to collaborate with Mifundo, allowing EU citizens and expats in the EU the freedom to move to another country without losing their credit history. Meanwhile, lenders also gain higher accuracy and security in their loan portfolios.”

According to Danmarks Statistik, nearly 80,000 expats moved to Denmark in 2023, while 20,000 Danes returned home from abroad.

Around 50,000 foreign nationals emigrated from Denmark in the same period, alongside 17,500 Danes.

“Mobility has increased significantly, especially over the past ten years, highlighting the need for better cross-border credit assessments,”

Rasmussen noted.

Kaido Saar, CEO of Mifundo, commented on the partnership:

“Our goal is to create financial mobility throughout Europe, and the partnership with Experian is a key part of achieving that. With Mifundo’s advanced technology solution, people across the EU will no longer be strangers to banks across borders – their creditworthiness will follow them, no matter where they choose to live in Europe. The same applies to EU citizens and expats who have lived in Denmark and return to their home country.”

Featured image credit: Mifundo