Behavioral credit scoring solution gives businesses an alternative score for approving “thin file” customers
CredoLab, a leading developer of bank-grade digital credit scorecards based on smartphone metadata, has secured US $7 million in its Series A funding round led by GBG, the global specialist in Identity Data Intelligence. The funding will enable CredoLab to focus on consolidating its leadership in Southeast Asia and to expand its market reach in the United States and key countries across Asia, Latin America, and Africa.
Read More: GlobalFintechSeries Interview with Jill Homan, President at DeepTarget
In addition to GBG, the round saw participation from Walden International, an existing investor, and Access VC among other new investors.
CredoLab develops bank-grade digital scorecards for banks, lenders, e-commerce, travel, ride-hailing, e-wallets, insurance, and retail companies; or essentially for any business that needs to make better credit decisions. CredoLab uses the best source of privacy-consented and permissioned data –smartphone and web metadata– to help its clients to expand their market share and decrease their cost of risk in real time. Since its inception in 2016, CredoLab has powered almost US $2 billion in loans issued by 70+ clients across 20+ countries.
Read More: The Influence of Mobile Apps WeChat Pay and Alipay Extends Far Beyond China’s Borders
“Despite the obvious slowdown caused by COVID-19, we have already seen a significant shift from physical to digital originations and an increased appetite for using alternative sources of data,” said Peter Barcak, CEO & Founder of CredoLab. “CredoLab has continued to provide a stable behavioral score that has kept its predictive power even as payment holidays have made it harder for lenders to rely on credit bureau scores. We have become an essential part of the recovery strategies of our clients as they restart lending in the post-COVID-19 environment in a risk-controlled way.”
Read More: Doxim Announces Omnichannel Loan Origination and Account Opening in Partnership with Mobetize
