CredoLab Closed 2020 with an 82% Increase in the Use of its Alternative Credit Scores

March 18, 2021

  • CredoLab's revolutionary technology, which helps banks and finance companies to analyze credit information in real-time from users' mobile phones, has positioned itself as a leader in the sector in Latin America and the world.
  • Over the past year, it gained 28 new customers and it proved to be the embedded scoring solution companies trusted to manage their loans.

Buenos Aires / Lima / Mexico / Colombia - (February 2021) - The COVID-19 pandemic that passed through 2020 and that keeps the world still in crisis today, reinforced the change in consumer habits and the turn to digital. Online banks and fintech were forced to democratize credit to serve a whole segment of the unbanked population, which was particularly affected by the economic consequences generated by the coronavirus.

Thanks to technology, financial institutions can confidently assess the creditworthiness of their customers even in the absence of a reliable credit bureau score. The same technology is already used to provide access to financing options by Buy Now Pay Later apps, online travel reservation companies, airtime payment providers, retailers and, increasingly, by telecommunication companies, insurance, and e-commerce platforms.

In this framework, CredoLab, the alternative credit scoring platform that evaluates the creditworthiness of consumers using the data provided by mobile phones, closed 2020 with marked growth.

The company announced that the datasets uploaded to evaluate users increased 73% compared to 2019 and the number of scores generated grew by 82%, indicating that entities relied on digital solutions to stay afloat in 2020.

"The total revenue generated by CredoLab in the fourth quarter of 2020 was on par with the fourth quarter of 2019," says Peter Barcak, CEO and Founder of CredoLab. “We have been providing embedded finance since 2016 - before the term went viral. Last year we became a reliable partner of 28 new clients in countries as different as Argentina, El Salvador, and Peru.”

As part of this expansion and consolidation in the region, CredoLab recently appointed María Carolina Rezemini Martins as the new Regional Sales Director for LATAM, based in Brazil, who will also be in charge of commercial relations in Colombia and Peru.

"Through the use of CredoLab, banks and fintechs can increase credit approval rates, reduce the percentage of rejected applicants and establish the predictability of the existing underwriting process," says Mariano Zadeh, Co-Founder of OMBU Tech Services (OMBU Tech), a provider of technology innovation and consulting solutions for companies in the United States and Latin America, who brought CredoLab to Latin America. Zadeh also assures that there were banks that achieved a 107% increase in their credit approval rate, the adoption of this platform by 61% of their clients and credit evaluations in less than 5 seconds.

The credit scoring algorithm can be customized to find creditworthy customers in any market and for any unsecured lending product. In a seamless way, the solution calculates real-time credit risk scores by looking at the way each customer use their smartphone versus how delinquent customers do.

It is important to note that the company provides access to a reliable alternative credit score without compromising the users’ privacy, without reading or accessing personal information, and always with the consent of the user.