article finfrong
Open Banking
Purchasing Power: how do Finfrog and Powens leverage Open Banking?
date Feb 21, 2023

Purchasing power has always been a core concern for us. Now, by exploiting the potential of Open Banking, players are responding to the needs of numerous French consumers: helping with their finances.


This is the case of Finfrog, which took on the issue of purchasing power by designing a platform for loans between individuals which had more than 300,000 users in 2022. Find out how this fintech delivers loans that are affordable, responsible, and accessible to the vast majority of people using Powens’ Open Banking technologies.


The 10th of the month: Finfrog’s purchasing power indicator powered by Powens’ API

On 10 June 2022, there was just €98 left on the accounts of French individuals who earned less than €2,000 net per month, we learn from the Finfrog website. The previous month, this amount was just €54.

Where did the fintech, specialized in loans between individuals, get these figures? By simply analyzing the bank account data aggregated by our Bank product incorporated into its platform. Our API links bank information systems to Finfrog’s platform thus simplifying data collection.

Launched last November, Finfrog’s “10th of the month” indicator in partnership with RMC shows how much money remains on consumers’ accounts, i.e. the state of their purchasing power. At present, 38 million of them have monthly income of less than €2,000. This date is significant because income is paid into the account and the main expenses are debited before the 10th of each month (energy bill, internet and telephone subscriptions, rent, insurance, etc.). 

Another statistic shared by Les Echos reveals that nearly half of the French (46%) are in the red at least once a year, incurring interest on arrears at a rate between 15% and 20% along with overdraft intervention charges.

The observation is striking: the purchasing power of half of the French is tightly limited. This confirms the relevance of Finfrog’s offering available since 2016, based on our Open Banking technologies.




Easy, ultra-fast, and inclusive lending between individuals thanks to Open Banking

Exactly 5 minutes to file a loan application, less than 24 working hours to get an answer, and instant receipt of funds: this is the feat that Finfrog achieves. No need to provide a long list of supporting documents to make an appointment or even to have a permanent employment contract. Moreover, there are no bad surprises as regards the rates charged, which are much lower than the overdraft charges practiced by the banks.

Through our API, Finfrog accesses applicants’ bank history immediately, automatically, and securely. Its scoring algorithm, developed in-house, takes over in order to assess the application. As indicated by Riadh Alimi, founder of Finfrog: “ Powens Open Banking API enables us to significantly streamline the loan application journey and offer a 100% digital offer with a decision notified in less than 24 hours.”

In practice, it is sufficient for applicants to fill in their bank identifiers. We encrypt these data end-to-end, which guarantees a level of security identical to that of banking institutions. 


Open Banking: features that improve the loan application experience 

As you will have understood, Open Banking offers great opportunities for existing and new players to offer solutions that empower companies and individuals. 

These solutions have considerable advantages for both credit players and their customers:

  • A more efficient solvency analysis and thus better access to credit, where the traditional system would have excluded certain profiles based on their professional status (employees with set-term employment contracts, temporary workers, self-employed, etc.). Having access to reliable and up-to-date banking data gives credit operators an excellent overview of customer assets and behavior. 
  • A better experience: with access to bank data and documents, customers and credit operators no longer have to worry about administrative red tape. The information collection and credit scoring analysis processes are greatly accelerated, so customers get answers faster.
  • More security: data and documents are sent directly from the clients’ bank accounts who have first logged on and given their agreement. Thus, the risk of falsification and fraud is greatly reduced; since this information is encrypted, it cannot be hacked.

As shown by the Finfrog “The 10th of the month” indicator, many people have difficulty stretching out their finances to the end of the month and need a boost to finance their life projects (studies, renovation work…) or everyday contingencies (car repairs, health care…), and this support is often needed quickly.

At Powens, we are very proud to have made it possible to realize Riadh Alimi’s vision thanks to our technical block: offer loans that are accessible, responsible, and open to all (self-employed workers, freelancers, students, etc.). 


Let’s reinvent financial services together!

Do you want to create innovative services through Open Banking?

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Sébastien Bianco
Sébastien Bianco
Creative Lead