New Pay Day Lender Business

The Philippines is one of the fast-growing South East Asian countries where more than one-third of the population do not have bank accounts. Yet, almost 70% of them are in need of credit and often end up going to unsecure, informal lenders.

With the aim to provide responsible, ethical lending solutions, this client of CredoLab’s kicked off its services in the Philippines. It offered the Filipinos a ground-breaking, fast and convenient payday loan product through a mobile app. By making the process of application and approval easy, this lender wanted to foster financial inclusion, improve standards of living, and ultimately impact the applicants’ lives in a positive manner.

The Challenges

  • To launch a mobile-only payday loan product from scratch
  • Lack of credit bureau data or historical data
  • No parent company’s support

The Solution

  • Integrated the CredoLab’s SDK into the lender’s Android mobile app
  • Developed a set of smart knockout rules based on application data and anonymous data collected from the clients’ smartphones
  • Launched CredoLab scorecard 7 months after start-up with gini of .42 developed on 1200 loans of which 460 are defaulters


Drop in FPD

(First Payment Defaulters)

User Adoption

(% of customers who grant permissions)

Time to Loan

(time from scoring request to disbursement)