News and updates at CredoLab

CredoLab Featured in Fintech News SG on Why Asia Needs Alternative Credit Scoring

While progress has been made in expanding financial inclusion, there are still billions of people in the world who do not have access to basic banking services, including access to credit.

Between 2011 and 2014, the number of people worldwide having an account grew by 700 million between 2011 and 2014, according to the World Bank. Today, 62% of the world’s adult population has an account, up from 51% in 2011.

Yet, there is still a long way to go. The organization estimates that there are still about two billion unbanked people in the world. Countries in Africa and Asia have some of the highest rates of unbanked populations: 21% in China, 47% in India and 64% in Indonesia.

Being financially excluded means that you don’t have access to banking-type services of any description. The inability to obtain credit has created major barriers for people to overcome poverty by making it nearly impossible for individuals and small businesses to borrow or save money.

That being said, lending to the underbanked requires credit risk assessment and management that is as diverse as the universe of borrowers.

In emerging countries, credit assessment of individuals unknown to a lender is often subjective, time-consuming and expensive. In many instances, it involves home visits by loan officers to interview applicants and their neighbors.

Furthermore, credit bureau coverage may be patchy or non-existent, reflective of the fact that many consumers in these markets still have little to no history with financial institutions.

“The current lack of instruments for predicting consumer credit risk leaves billions of creditworthy emerging market customers without access to credit,” Peter Barcak, co-founder and CEO of CredoLab, told Fintechnews.sg.

In particular, the lack of data required by credit bureaus to allow accurate assessment, as well as limited know-how, are a real challenge for lenders in emerging economies.

“Bureau data tends to be out of date or incomplete. A majority of the alternative scoring providers use up-to-date current information, for instance, snapshots from a user’s mobile phone,” Barcak said.

“There will always be pockets of creditworthy people not within the bureau. Alternative scoring providers can potentially open up these demographics.”

Barcak’s venture, CredoLab, is a risk management startup headquartered in Singapore. The company has developed a credit scoring mobile app, called CredoApp. The software tracks the “anonymized digital footprints” of consumers and leverages on predictive analytics to generate their digital credit scorecards.

CredoLab harnesses technology and digital platforms to provide unbanked consumers in Asia with financial services.

Besides the obvious social impact, the market opportunity for the unbanked population is enormous. Accenture estimates that bringing unbanked adults and businesses into the formal banking sector could generate about US$380 billion in new revenues for banks.

CredoLab partners with lenders across Southeast Asia and integrates its digital scorecard into their existing credit scoring infrastructure.

“Some companies typically use multiple alternative data sources to provide additional insight and reasoning for their credit decisions – to say there is no space for alternative providers alongside bureau would be a false statement,” Barcak said.

CredoLab has ongoing operations in Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, and Myanmar.

The company recently raised US$1 million to ramp up its product offerings and expand its operations. It is expected to generate more than a million credit scores by the end of the year and reach profitability by the end of 2017.

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Singapore fintech startup CredoLab raises over US$1M to help unbanked consumers manage their credit

CredoLab said that the newly-raised capital — twice the amount it originally intended to raise — will be used to ramp up its product offerings and expand its operations to serve the underbanked population.

As part of the funding round, Fintonia Group Chairman & CEO Adrian Chng has joined CredoLab’s Board of Directors.

Founded in 2016, CredoLab offers a credit assessment mobile app called CredoApp. This software tracks the “anonymised digital footprints”  of consumers and leverages on predictive analytics to generate their digital credit scorecards.

This solution is particularly useful in emerging market such as Indonesia, the Philippines, Malaysia, Thailand, Vietnam and Myanmar, where there is a significant unbanked demographic with no credit history.

Many of these unbanked consumers would, however, have at least have access to low cost smartphones. By generating a credit score using the CredoApp, they would thus be able to access loans from microfinance institutions and commercial lenders.

“By addressing the huge market demand for financing in emerging markets, CredoLab is seizing a leadership position in advancing credit access and filling the void created by the banking infrastructure and logistical challenges in the developing world,” said CredoLab Co-Founder and CEO Peter Barcak, in an official press statement.

CredoLab said it has more than 10 financial institutions region in its client base and is set to increase its client portfolio by more than two-fold in the next six months.

It is expected to generate more than a million credit scores by the end of the year and reach profitability by the end of 2017.

CredoLab Featured in Fintech News SG

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CredoLab Achieves Remarkable Results in Indonesia Pilot

Credolab completed a highly successful data collection pilot project with one of the biggest retail lenders in SE Asia. The 3 month trial was the first real life application of our visionary technology, and produced very promising results. The clients’ data collected through CredoApp, our state-of-the-art mobile app, showed an exceptionally high correlation with repayment behaviour, culminating in a truly remarkable Gini coefficient of 0.71. In addition to showcasing the tremendous potential of our technology, the pilot serves as an opportunity for us to further optimize our app. We look forward to discussing with you how we can help optimise your credit processes! Please contact Kris Emerton-Jones at: kemerton@credolab.com for more details.  

CredoApp is Now Live on Google Play Store in 7 Countries

As of today, CredoApp is available for download from the Google Play Store in 7 countries in the SE Asia region. The state-of-the-art app, which is instrumental in our push for a more efficient, cost-friendly, and rapid credit scoring process, can now be downloaded onto Android smartphones in Indonesia, Vietnam, Singapore, Philippines, Thailand, Malaysia, and Myanmar. This marks an important step forward in CredoLab’s quest to bring credit to the underbanked population of South East Asia.We look forward to discussing with you how we can help optimise your credit processes! Please contact Kris Emerton-Jones at: kemerton@credolab.com for more details. 

CredoLab Launches Consulting & Advisory Service

CredoLab has just launched our customised advisory services for banks in the areas of retail consumer risk management and operational improvement. Depending on our Partner’s needs, CredoLab can provide customised advisory services in the areas of retail consumer risk management and operational improvement. We look forward to discussing with you how we can help optimise your credit processes! Please contact Kris Emerton-Jones @ kemerton@credolab.com for more details.

CredoLab Launches CredoApp

To enable the launch of a commercial Digital Scorecard product, CredoLab has completed development of our proprietary Mobile App “CredoApp”. The CredoApp is used during the loan application process and it will provide CredoLab with a unique snapshot of the individual customer’s digital footprint and behaviour. In combination with historical client credit data, the CredoApp also supports the development of robust Big Data-based predictive tools. 

Kris Emerton-Jones Joins CredoLab as Head of Client Solutions from Fitch Group

CredoLab are delighted to announce that Kris Emerton-Jones has joined our team from Fitch Group to act as Head of Client Solutions. Kris will be based in our Singapore HQ and will assume full responsibility for our Sales & Marketing function. He brings a wealth of Sales & Marketing experience as well as 8 years of specific Asia Pacific experience.

CredoLab Releases Telco Scorecard System

CredoLab have developed and launched our initial telco scorecard products through statistically back-testing Bank Telco Scores (using Telco dataset to mine for predictors). The resulting products are hosted on CredoLab’s servers and sold to lenders on subscription basis. Lenders’ credit systems link into CredoLab’s API in real-time to minimize TTY and error rate.