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.

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In addition to GBG, the round saw participation from Walden International, an existing investor, and Access VC among other new investors.

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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.

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"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.”

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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.”  

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“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.

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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 countries like Saudi Arabia and Egypt. 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 (wallets, ride-hailing, pay later) and help them grow faster, post-pandemic.

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CredoLab will focus on consolidating its leadership in Southeast Asia and expanding its market reach in key countries across Asia, the Middle East, Africa and Latin America.

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Elaborating further, Peter Barcak said, “Last year we had some great names come on board in 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.”