Based in Singapore, CredoLab is a global provider of alternative credit scoring utilizing mobile phone data. Michele Tucci, head of product development and data partnerships, tells Boris Plantier more about the credit solution that uses a digital footprint via a mobile app
CredoLab partners with banks, retailers, consumer finance companies and telecommunication companies to enable the financial access of underbanked consumers and improve their standard of living.
“CredoLab's idea was born while Peter Barcak, CEO and co-founder, was CRO of Platinum Bank in Ukraine,” says Tucci. “With his team, Peter started testing new sources of data – including telco, social media and psychographic data – to gain a competitive edge in assessing new-to-bank, underserved customers that otherwise the bank could have not approved and onboarded”.
“After selling the bank, Peter regrouped a few of the most dynamic and forward-thinking team members, relocated to Singapore, identified an exciting market for building an alternative credit risk score provider, and founded CredoLab.”
CredoLab has identified the current lack of instruments for predicting consumer risks as a real problem in the market, because it leaves creditworthy emerging market customers without access to credit. The absence of such instruments for assessing low-income consumers, students, and even white-collar immigrants’ credit risk profiles also leaves many mature market customers in a similar situation.
Its solution comes in the form of CredoApp, a white label mobile app which, after collecting the users’ permissions and privacy consent, collates data and can be integrated in various configurations. It analyses over 25,000 characteristics from a user’s smartphone, working in harmony with existing technology to connect the dots that traditional methods can’t.
Via the use of artificial intelligence and proprietary algorithms, CredoLab turns mobile metadata into highly predictive credit risk and anti-fraud scorecards. Behavior can be tracked anonymously through a user’s digital footprint, from contacts, to general phone usage, internet activity, and even types of mobile apps installed.
CredoLab is entering an exciting period. “While we consolidate our position as the largest provider of alternative credit risk scores based on smartphone device data, we are already working on solving another pressing problem of all lenders: how to buy good leads,” says Tucci. “The current way in which banks and lenders buy leads is expensive and creates pathetic results. CredoLab is partnering with a leading comparative website and a mobile wallet to revolutionize the way leads are selected, pre-qualified and even pre-approved.”
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