CredoLab - Frequently Asked Questions

How is the credit report analysis calculated?

The assessment of the users' solvency and interest in receiving financial services is fully automatic. The estimates of their financial health and status are the results of a set of parameters calculated according to the proprietary methodology developed and implemented by CredoLab.

Can CredoLab guarantee the provision of financial services?

No, the use of the CredoApp does not guarantee the provision of financial services with the Financial Institution the users are applying for.

Does CredoLab provide financial services?

CredoLab does not provide financial services, nor does CredoLab take decisions on rendering or refusing to provide users of the CredoApp with financial services.

Who receives the credit analysis report?

The result of the solvency and credit risk assessment, with the user's consent, is transferred for further decision-making to the bank or lender from which the user intends to receive financial services. Such financial institution independently decides on the possibility of providing the user with financial services.

Why does CredoLab collect information about the users?

CredoLab collects users' anonymised data to assess their financial health and status so that financial institutions are able to decide whether or not to grant a loan, a credit card or any other financial services. CredoLab assesses the users' solvency, their probability of default and interest in receiving financial services only in the context of their application for the provision of financial services.

Why do loan or credit card applicants need to give permissions?

CredoLab values the privacy of borrowers and is committed to keeping their data private and secure. As such, CredoLab will access users' data only after they have agreed to all relevant operating system permissions, given their privacy consent, and after they have clicked on the button that says “proceed with credit analysis”.

What information does CredoLab not collect?

Unless otherwise requested by the bank or lender, CredoApp does not extract personal information and does not have names, emails, or phone numbers nor collects, for instance, the list of contacts in the phone book.

What information does CredoApp collect?

The CredoApp accesses and collects anonymised data regarding call history, contacts, SMS history, calendars, and storage. Examples of anonymous data collected are information about incoming and outgoing phone calls, SMS and e-mail messages, data on the use of the internet browser and the geographical position of the mobile device, information about the list of applications installed on the mobile device and the calendar data.

Can CredoApp be run in trial mode alongside existing credit scoring systems?

Yes. During the pilot phase and subsequent model development, a client is able to assess and validate the scorecard before putting it into production. CredoLab's integration methods are very flexible and can accommodate the needs of any bank and lender.

How quickly can CredoApp assess the credit score of a new applicant?

We assess and deliver each score in less than 1 minute.

How long does it take to deploy CredoApp?

We can be up and running in pilot phase in less than two weeks. With it being a plug and play solution there is no need for long IT integration projects.

How accurate is the score in predicting default rates?

CredoLab's score is extremely accurate. We measure the predictive power of our scorecards by assessing the Gini Coefficient. The average Gini coefficient of a bank or lender in an emerging market is 0.27. Because of the nature of the data we use, the models we develop deliver an average Gini coefficients of 30% higher than what the currently has.

How does CredoApp work to produce a score?

The CredoApp analyses the smartphone footprint only after the user has granted the required operating system's permissions and given her data privacy consent. Only at this point, the CredoApp proceeds with the credit analysis. The score is provided directly to the client bank either via our web-based dashboard or the API. Our plug-and-play solution requires minimal IT integration and is light and fast for the borrower.

What scoring technique does CredoLab use?

Our scoring solution utilises a proprietary Mobile App, CredoApp, developed to enable the launch of a digital scorecard. The app is used during the loan or credit card application process and provides CredoLab with a snapshot of the customer’s digital footprint. In combination with the bank's performance data, this enables the development of robust Big Data-based highly predictive scorecards that enhance the banks' credit decisioning process.

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