This news first appeared in Fintech Singapore.
CredoLab, a developer of bank-grade digital scorecards based on smartphone metadata, announced its expansion into the Sub-Saharan African fintech market with the addition of three new clients – two banks and a leading airtime credit provider.
According to its press release the Singapore-based fintech start-up has successfully developed scorecards for over USD 1 billion in loans issued by more than 50 lenders across 15 countries.
CredoLab’s alternative credit scoring solution comes at a critical juncture in the region’s focus on financial inclusion. The Africa Digital Financial Inclusion Facility (ADFI) was recently launched by the African Development Bank to address the needs of approximately 76% of the Sub-Saharan African population that remains underserved and excluded from the traditional banking sector.
Peter Barcak, co-founder and CEO of CredoLab, said, “The growing penetration of Android smartphones and KaiOS smart-feature-phones currently outpaces the penetration of bank accounts in the continent. This presents an immense opportunity for fintechs like CredoLab to tap into behavioural data to assess the creditworthiness of any user and enable them to receive loans at fair terms, even in the absence of credit history.“
“Our entry into the region has seen strong momentum in client engagements and partnerships, and we will continue to build on this success by maintaining a positive experience for our clients and identifying opportunities to work with government and industry initiatives to facilitate financial inclusion. We started in South Africa and will soon launch in Ghana, and look at targeting Nigeria and Kenya in early 2020,”
CredoLab claims that its proprietary algorithm makes use of anonymous, non-personal, consented smartphone metadata to predict the creditworthiness of users. With smartphone penetration in sub-Saharan Africa steadily increasing and predicted to double by 2025, smartphone-based credit scoring is on track to supplement if not replace traditional credit scoring methods.