- CredoLab provides behavioural credit scoring solutions to businesses worldwide
- The funding round was joined by Access Venture Capital and existing investor Walden International
- CredoLab will use the funds to strengthen its presence in high growth existing markets in East Asia, as well as further expand into Latin America and Africa
CredoLab, a leading developer of bank-grade digital credit scorecards based on smartphone metadata, has secured USD 7 million in its Series A round funding led by GBG, the global specialist in Identity Data Intelligence.
In addition to GBG, the round saw participation from Walden International, an existing investor, and Access VCamong 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 the market share and decrease their cost of risk in real time. Since its inception in 2016, CredoLab has powered almost USD 2 billion in loans issued by 70+ clients across 20+ countries.
“Despite the obvious slowdown caused by COVID-19, we have already seen a significant shift from physical originations to digital ones and an increased appetite in using alternative sources of data” said Peter Barcak, CEO & Founder of CredoLab. “CredoLab has continued to provide a stable behavioural score that has kept its predictive power even in the presence of payment holidays when lenders can’t 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.”
Chris Clark, Chief Executive, GBG said: “GBG’s fraud and compliance solution allows financial institutions to onboard and transact with their customers quickly, safely, and securely.We have experienced first-hand CredoLab’s capabilities from our ongoing commercial partnership. The company’s AI-based proprietary technology will complement our existing offering but also provide critical behavioural risk reference data from good customers that are financially excluded.”
“We are ecstatic to be associated with GBG, Walden International, and Access VC who have shown great confidence in our team, our product, and our cause by backing us in our latest round of funding.” Barcak said.
With the objective of democratising credit scoring, CredoLab plans to use this investment to further enhance its product features and expand the understanding of customers’ digital risk DNA. In addition to strengthening its alternative credit core scoring algorithm, CredoScore, the Singapore-based FinTech company will also push the adoption of its solutions in other industries at the intersection with financial services and help them grow faster, post-pandemic.
CredoLab will focus on consolidating its leadership in Southeast Asia and expanding its market reach in key countries across Asia, Latin America, and Africa.
Elaborating further, Peter Barcak said, “Last year we had some great names come on board in Brazil, India, South Africa, and Nigeria. In the next 12 months, with more resources at hand, we intend to expand our sales network and further target non-banking financial institutions.”
About CredoLab:
CredoLab develops bank-grade digital scorecards for banks, lenders, pay later, e-commerce and ride-hailing players, and any other industry at the intersection of financial services. Built on over 22 million loan applicants across 70+ lending partners, our AI-based algorithm crunches millions of features from opt-in, anonymous smartphone and web behavioural metadata to find the most predictive behavioural patterns before converting them into credit scores. These enable any lender to make the most granular assessments possible of their applicants. Our clients have seen 20% higher new to bank customer approvals, a 15% reduction in non-performing loans, and a 22% dip in fraud rate.
Established in Singapore in 2016, CredoLab has powered almost USD 2 Billion in loans issued after analyzing about 1 trillion data points across 20+ countries. We are backed by GBG, Walden International, Access Venture Capital, Fintonia Group and FORUM.
About GBG:
GBG offers a range of solutions that help organisations quickly validate and verify the identity and location of their customers.
Our market-leading technology, data and expertise help our customers improve digital access, deliver a seamless experience and establish trust so that they can transact quickly, safely and securely with their customers online.
Headquartered in the UK and with over 1,000 team members across 16 countries, we work with 20,000 customers in over 70 countries. Some of the world’s best-known businesses rely on GBG to provide digital services and keep the economy moving, from US e-commerce giants to Asia’s biggest banks and European household brands.
To find out more about how we help our customers establish trust with their customers, visit www.gbgplc.com and follow us on LinkedIn and Twitter @gbgplc.