CredoLab Aims for Underbanked Segments through Data Analytics

The Singapore-based company CredoLab raised 1 million dollars from US global venture capital Walden International to focus on Asian and African regions underserved by traditional financial institutions. This FinTech provides alternative credit rating solutions to local industry players, by way of improving banking inclusion and accesses to financial services for underbanked customers.

CredoLab relies on an alternative scoring techniques based on their own mobile app, Credoapp, building on Artificial Intelligence. This apps extracts the customer’s phone number when his file is registered, and then retrieves and analyses significant volumes of data regarding the way he uses his phone and behaves. A “digital footprint” is created enabling them to calculate a credit score (in less than two minutes according to CredoLab).

Over the past few months, CredoLab managed roughly thirty partnerships with consumer lending institutions. A significant number of credit scorecards has been generated for customers in Southeast Asia, China and even in South America. Through this new investment, CredoLab will keep focusing on underbanked populations in Asia, as well as in Africa (where less than 20% of the population has access to core financial services).

Predictive analysis applied to this non-traditional data allows consumers with little or no credit history to access banking services.

Comments – Emerging Consumer lending markets increasingly targeted

Through setting up partnerships with retail banking players and consumer lending companies, CredoLab seeks to improve people’s and companies’ standard of living, as without a credit history they have poor access (or no access at all) to traditional financial services. From now on, they may subscribe affordable banking products likely to meet their needs, while reducing delinquency rates on granted loans.

CredoLab’s scoring system aims for the same goals as those featured by other industry players on emerging market: expanding their pool of borrowers while keeping risk levels low.