Fintech Friday: CredoLab

Efma feature

14 December 2018

CredoLab aims to help financial institutions make better credit decisions, in turn making credit more accessible to those who are left out of mainstream financial services, said chief product officer Michele Tucci to Boris Plantier.

There are over two billion adults in the world who do not have bank accounts. “This group of customers misses out on the traditional banking services because they don’t fit in the narrow, conventional definition of creditworthiness,” said Tucci. These people are therefore missing opportunities that could help them, for example in building or expanding their businesses.

It is CredoLab’s mission to give these people back these opportunities, by redefining how financial institutions assign credit and giving them access to mobile device data. “By leveraging this superior alternative source of data, we give financial institutions the power to underwrite applications with high predictability and great accuracy,” said Tucci. CredoLab uses data from smartphones to predict a customer’s likelihood of defaulting on payments. “By accessing anonymised, metadata of the device, our AI-powered algorithm sends the financial institution the verdict on the applicant in a matter of seconds.” According to Tucci, this enables CredoLab to find new demographics, whilst reducing the costs and processing times of financial institutions.

CredoLab collects its data through two methods: a standalone mobile app, CredoApp; or a software development kit library that integrates with the financial institution’s existing app. Once a customer has installed the app and given data privacy consent, the app will read the anonymous data.

“CredoLab is the only provider of bank-grade credit scoring solutions based on smartphone data. We do not use any of the applicant’s personal information nor social media data,” said Tucci. The algorithm is designed to read and analyse the device’s metadata without moving any files or information off the device. The result of the analysis is sent exclusively to the financial institution.

Since credit decisions are not limited to financial institutions, CredoLab can customize its services to meet the specific requirements of customers, for example enabling “insurance giants, automobile companies, and consumer electronics brands to assess hundreds of applications to find those eligible for credit,” said Tucci.

The company’s future priorities are to “help financial institutions, insurance companies and retailers reach out to the right customer, at the right time and with the right offering,” as well as reducing fraud, verifying customers’ identities and improving on the rate of collections.

Tucci says that CredoLab is pursuing partnerships, for example with comparison website GoBear, to help financial institutions find “quality, pre-screened and pre-approved leads that they can accept more confidently and quickly”.

Tucci also addresses the fact that using technology empowers both the credit-providers and customers, “we can now make the process of finding the right credit solution (loans, credit cards etc) easier for the customers and make business development a hassle-free process for the credit providers.”

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Keywords : Fintech , AI/Robotics , Credit

Geography : Singapore