Regulation as Opportunity: Shufa's Unconventional Approach to Data

Hi, I'm Amy Shapiro. We're here today at Hi, I'm Amy Shapiro. We're here today at Calculists and CEX Mind the Tech Berlin. Calculists and CEX Mind the Tech Berlin. Calculists and CEX Mind the Tech Berlin. We're joined by Josephine Akaman, the We're joined by Josephine Akaman, the We're joined by Josephine Akaman, the CMO and head of strategy and private CMO and head of strategy and private CMO and head of strategy and private clients at Shufa. Josephine, thank you clients at Shufa. Josephine, thank you clients at Shufa. Josephine, thank you so much for joining us today. so much for joining us today. so much for joining us today. >> Thank you for having me. >> Thank you for having me. >> Thank you for having me. >> It's a pleasure to have you. Um, to >> It's a pleasure to have you. Um, to >> It's a pleasure to have you. Um, to start off with, can you explain to us start off with, can you explain to us start off with, can you explain to us exactly what uh what Shufa is and which exactly what uh what Shufa is and which exactly what uh what Shufa is and which industries are relying the most on your industries are relying the most on your industries are relying the most on your services?

services? services? >> Of course. So, Shufa is Germany's >> Of course. So, Shufa is Germany's >> Of course. So, Shufa is Germany's leading information services provider, leading information services provider, leading information services provider, meaning we hold information on roughly meaning we hold information on roughly meaning we hold information on roughly six million companies and 68 million uh

six million companies and 68 million uh six million companies and 68 million uh individuals. individuals. individuals. >> And that is mostly used in industries >> And that is mostly used in industries >> And that is mostly used in industries such as banking um such as such as banking um such as such as banking um such as telecommunications of course, but also telecommunications of course, but also telecommunications of course, but also online retailers, housing industry. So online retailers, housing industry. So online retailers, housing industry. So basically uh all the industries that um basically uh all the industries that um basically uh all the industries that um yeah yeah yeah >> rely essentially on creditworthiness >> rely essentially on creditworthiness >> rely essentially on creditworthiness assessments uh but we also have services assessments uh but we also have services assessments uh but we also have services in fraud prevention identification in fraud prevention identification in fraud prevention identification services and we are moving more and more services and we are moving more and more services and we are moving more and more to being a rect. So also uh providing to being a rect. So also uh providing to being a rect. So also uh providing services like know your customer uh services like know your customer uh services like know your customer uh onboarding and monitoring for example. onboarding and monitoring for example. onboarding and monitoring for example. >> Interesting. Well I have to ask we're in

>> Interesting. Well I have to ask we're in >> Interesting. Well I have to ask we're in the midst of an AI revolution. So uh how the midst of an AI revolution. So uh how the midst of an AI revolution. So uh how is Shuifa adopting and utilizing uh AI? is Shuifa adopting and utilizing uh AI? is Shuifa adopting and utilizing uh AI? For us, it's important currently to For us, it's important currently to For us, it's important currently to point out that our base score is not uh point out that our base score is not uh point out that our base score is not uh created based on AI. So, we still rely created based on AI. So, we still rely created based on AI. So, we still rely on our proprietary database with on our proprietary database with on our proprietary database with objective and validated information that objective and validated information that objective and validated information that we get from our partners. Um, and then we get from our partners. Um, and then we get from our partners. Um, and then of course we use uh proven statistical of course we use uh proven statistical of course we use uh proven statistical methods um to build our scores and also methods um to build our scores and also methods um to build our scores and also the next generation of the scores, the next generation of the scores, the next generation of the scores, >> right? And and so still though I must

>> right? And and so still though I must >> right? And and so still though I must ask like how how do you go about ask like how how do you go about ask like how how do you go about avoiding a bias uh and and keeping avoiding a bias uh and and keeping avoiding a bias uh and and keeping privacy protection kind of in mind with privacy protection kind of in mind with privacy protection kind of in mind with what it is uh that you do at Shoua. what it is uh that you do at Shoua. what it is uh that you do at Shoua. >> Yeah. So that's also one of the reasons >> Yeah. So that's also one of the reasons >> Yeah. So that's also one of the reasons right for us for example transparency right for us for example transparency right for us for example transparency and um objective data and objective and um objective data and objective and um objective data and objective results are um yeah and are on the core results are um yeah and are on the core results are um yeah and are on the core of what we of what we do right um and of what we of what we do right um and of what we of what we do right um and what we deliver. So um that's another what we deliver. So um that's another what we deliver. So um that's another reason currently why we don't use AI but reason currently why we don't use AI but reason currently why we don't use AI but of course you know we use AI in our of course you know we use AI in our of course you know we use AI in our processes in order to become more processes in order to become more processes in order to become more efficient um throughout the company um efficient um throughout the company um efficient um throughout the company um that of course we do

that of course we do that of course we do >> well looking ahead that I understand >> well looking ahead that I understand >> well looking ahead that I understand that the well we know that there are big that the well we know that there are big that the well we know that there are big regulatory changes coming in Europe how regulatory changes coming in Europe how regulatory changes coming in Europe how is Shuifa preparing uh for this is Shuifa preparing uh for this is Shuifa preparing uh for this >> so we see as a tech of course um >> so we see as a tech of course um >> so we see as a tech of course um regulation always as an opportunity and regulation always as an opportunity and regulation always as an opportunity and not a threat uh Um and we see ourselves, not a threat uh Um and we see ourselves, not a threat uh Um and we see ourselves, you know, we've been around for 100 you know, we've been around for 100 you know, we've been around for 100 years. So we see ourselves as a reliable years. So we see ourselves as a reliable years. So we see ourselves as a reliable partner and this is how we position partner and this is how we position partner and this is how we position ourselves um for our clients to make ourselves um for our clients to make ourselves um for our clients to make sure that we provide the solutions to sure that we provide the solutions to sure that we provide the solutions to them um yeah for them to be compliant them um yeah for them to be compliant them um yeah for them to be compliant effectively. So for us it is an effectively. So for us it is an effectively. So for us it is an opportunity. opportunity. opportunity. >> And finally like taking this kind of

>> And finally like taking this kind of >> And finally like taking this kind of attitude I suppose what is it that what attitude I suppose what is it that what attitude I suppose what is it that what can uh organizations around the world can uh organizations around the world can uh organizations around the world learn um from this innovating under learn um from this innovating under learn um from this innovating under under strict kind of I guess uh a strict under strict kind of I guess uh a strict under strict kind of I guess uh a strict environment. environment. environment. So I think you know regulation

So I think you know regulation So I think you know regulation or also you know privacy regulation etc or also you know privacy regulation etc or also you know privacy regulation etc etc. So um for us of course it's very etc. So um for us of course it's very etc. So um for us of course it's very important to you know adhere strictly to important to you know adhere strictly to important to you know adhere strictly to the rules. Um I think you know what the rules. Um I think you know what the rules. Um I think you know what people talk about it these things become people talk about it these things become people talk about it these things become a problem if it's not um written or a problem if it's not um written or a problem if it's not um written or created in a very precise way created in a very precise way created in a very precise way >> because then innovation is sometimes >> because then innovation is sometimes >> because then innovation is sometimes hampered or slowed down because people hampered or slowed down because people hampered or slowed down because people would still need to would still need to would still need to >> interpret the regulations right and then >> interpret the regulations right and then >> interpret the regulations right and then it takes time. So versus then going it takes time. So versus then going it takes time. So versus then going through the door, you still need to sort through the door, you still need to sort through the door, you still need to sort of, you know, tap in the dark and of, you know, tap in the dark and of, you know, tap in the dark and actually identify which door to go actually identify which door to go actually identify which door to go through, right? Um through, right? Um through, right? Um >> but also it can be a chance, you know, >> but also it can be a chance, you know, >> but also it can be a chance, you know, so you can really learn from it to build so you can really learn from it to build so you can really learn from it to build better solutions from the scratch um to better solutions from the scratch um to better solutions from the scratch um to you know build it into your designs and you know build it into your designs and you know build it into your designs and uh effectively you know create a USP uh effectively you know create a USP uh effectively you know create a USP around it. around it. around it. >> Mhm. Well, a very interesting and uh >> Mhm. Well, a very interesting and uh >> Mhm. Well, a very interesting and uh universal thought to end on. Josephine, universal thought to end on. Josephine, universal thought to end on. Josephine, thank you so much for your time and I I thank you so much for your time and I I thank you so much for your time and I I hope you enjoy the rest of your day here hope you enjoy the rest of your day here hope you enjoy the rest of your day here at Mind the Tech Berlin. Thank you.