GBG, the global identity data intelligence specialist, has joined as the leading investor in a $7m Series A round for CredoLab Pte Ltd, the leading developer of bank-grade digital risk scorecards.
Established in Singapore in 2016, CredoLab is on a mission to make credit available to all. It has powered over $2bn in loans today, using cutting-edge technology to analyse over 1tn data points across 21 countries. CredoLab develops digital scorecards for any business that needs to make better credit decisions - such as banks, lenders, e-commerce, travel, ride-hailing, e-wallets, insurance, and retail companies – from the best alternative data source: privacy-consented and permissioned, smartphone and web behavioural data.
Built on over 22m credit applications across more than 70 lending partners, CredoLab’s AI-based algorithm crunches millions of features to find the most predictive micro-behavioural patterns, before converting them into risk scores. Matching the customer’s device patterns to these scores enables any business to make the most granular assessments possible of their prospective customers, even in the absence of credit bureau scores.
CredoLab addresses the lack of predictive data for underwriting and fraud detection purposes in emerging and developed countries alike. Supported by the increasing penetration of smartphones and the ongoing shift from physical originations to digital ones, CredoLab provides a behavioural risk score built on data that supplements existing credit risk models to facilitate the approval of ‘thin-file’ customers including millennials, small business owners, new-to-credit, and new-to-bank. To date, CredoLab has maintained its predictive power even in the presence of payment holidays.
As previously announced, GBG has entered into a commercial partnership with CredoLab to accelerate its delivery of customer solutions by leveraging GBG’s Instinct digital risk management and intelligence platform. With GBG Instinct, banks, lenders, and mobile wallets can leverage an orchestration layer to perform multiple data callouts including to CredoLab’s cloud service. The partnership has already seen an uplift in CredoLab’s digital scorecard predictiveness by up to 40%, a drop in cost of risk by up to 22%, and an increase in approval rates of up to 32%. The partnership forms part of GBG’s continued commitment to offering an end-to-end digital fraud and compliance solution for any business looking to onboard and transact with their customers quickly, safely, and securely.