Credit risk reduction study wins 2021 Brazilian Finance Society Prize

The article shows how CRDC, a fintech company that provides services to banks and credit rights investment funds, searches for important information about receivables given as collateral for credit.
经济学
04 八月 2022
Credit risk reduction study wins 2021 Brazilian Finance Society Prize

“Risk Reduction Involving Credit and Invoices.” This is the name of the article that won the 2021 Brazilian Finance Society Prize, judged by the editors of the Brazilian Review of Finance. Matheus Bonelli, who has a Professional Master’s in Management for Competitiveness from Fundação Getulio Vargas’ Sao Paulo School of Business Administration (FGV EAESP), co-authored the paper with Professor Rafael Felipe Schiozer and Lucas Vasconcellos, who is doing a Doctorate in Management for Competitiveness at the same school.

The article shows how CRDC, a fintech company that provides services to banks and credit rights investment funds, searches for important information about receivables given as collateral for credit. This data is obtained from state invoice registration systems. This became possible following the creation of electronic invoices in Brazil.

The authors examined a set of credit transactions worth R$600 million in all, involving more than 3,000 companies and 240 financial agents. Based on this data, they studied the relationship between companies’ invoices and their behavior over time. According to Bonelli, this is important in an economy like Brazil’s, in which small and medium companies find it harder to take out loans, compared to developed countries.

“Using a credit risk model, we showed that this information may indicate false invoices. This cheap verification system enables banks to better assess the risk of invoice discounting, allowing greater access to credit for medium and small companies, which are precisely those that find it the hardest to obtain credit,” Bonelli says.

To find out more about the Brazilian Finance Society Prize, click here.

Watch this interview with Bonelli to learn more about his study
 

To see the complete article, click here.

About the Professional Master’s in Management for Competitiveness
 

The Professional Master’s in Management for Competitiveness at Fundação Getulio Vargas’ Sao Paulo School of Business Administration (FGV EAESP) is aimed at graduates with at least five years of research or management experience in their chosen field, who occupy or aim to occupy a leadership position and are interested in an innovative approach to the education process.

The program stands out for its combination of academic excellence and professional practice. It encompasses the following research areas: Finance and Controllership, People Management, Health Management, Sustainability, Retail, Information Technology, and Supply Chain Management.

To find out more about the program, click here.

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