CaSE STUDY: A Leading Digital Credit Provider in Latin America.

This fintech is a fast-growing regional lender operating in a highly competitive digital credit market. The company serves consumers seeking fast and convenient access to credit through a fully digital application journey.

INDUSTRY
Digital Lending / Consumer Finance
BUSINESS MODEL
100% Digital Credit Provider
REGION
Latin America and Central America
CUSTOMERS
Underserved, thin-file, mobile-first
PRODUCTS
Personal loans, short-term credit, consumer lending
CHANNEL
Mobile-first, fully digital application

THE CHALLENGE

In its effort to scale its credit card portfolio responsibly, the client faced significant pressures on two distinct horizons of credit risk

problem 1
Short-term Instability 
The portfolio was experiencing a 4.4% bad rate on First Payment Default (FPD30).
problem 2
Long-term Delinquency 
Chronic risk was evident with a 12.3% bad rate on the 60+ 9MOB (9 months on book) target
problem 3
Under-optimized Accuracy 
Existing risk models lacked the predictive depth required to differentiate risk profiles effectively across different stages of the customer lifecycle.

Why Incomplete Data Still Creates Growth Barriers for Lenders

To grow responsibly, lenders need a broader and more predictive view of applicant risk. Even with alternative data sources in play, many current models are still missing one critical layer: behavioural data that reveals true intent and repayment capacity.

Traditional Bureau Coverage
38%
Smartphone Penetration
73%
Credolab Scoreable Population
73%
Smartphone penetration vs. bureau coverage
LATAM consumer base
Smartphone Penetration by Country (%) Source: The Mobile Economy Latin America 2025 (GSMA Intelligence).

Data Coverage Gap in Latin America Sources: Alternative Credit Scoring and Regional Data Coverage Gap Analysis (Credolab); The Global Findex Database 2025: Connectivity and Financial Inclusion in the Digital Economy (World Bank Group)

THE SOLUTION

Credolab Added a Behavioural Layer to the Existing Underwriting Stack.

STAGE 01
Acquisition
Mobile-first marketing
channels
STAGE 02
Onboarding
Identity, KYC, SDK init
STAGE 03 · CREDOLAB
Decisioning
Behavioural + bureau
scoring
STAGE 04
Disbursal
Loan booking & funding
STAGE 05
Servicing
Repayment & portfolio
monitoring

IMPLEMENTATION

Credolab was integrated into the client's decisioning workflow and delivered measurable
business impact within the first benchmarking cycle.

Historical data review

The client's existing portfolio and performance data were
analysed to establish a benchmark.

Signal generation

Credolab generated behavioural and device-based risk signals from applicant data.

Model validation

The enhanced model was tested against the client's current decisioning approach.

Cut-off optimisation

Approval strategies and score thresholds were refined to match risk appetite.

Deployment

The solution was integrated into production decisioning
flows.

PERFORMANCE DETAIL

Side-by-side comparison of bureau-only baseline vs. bureau plus Credolab on thesame population, same observation window.

Metric
Before
After
60+ 6 MOB Bad Rate
12.3%
9.5% (-22%)
FDP30 Bad Rate
4.4%
3.0% (-32%)
Approval Rate
27%
29% (+7%)
Higher profitability per approved loan
Smarter growth with controlled risk
Better use of acquisition spend
More confident automated decisions
Stronger portfolio resilience
Full coverage of mobile-first applicants

Case Study Sheet

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