Singapore-based CredoLab that has developed a credit risk management solution has raked in over $1 million in a Pre-Series A round led by fintech VC firm Fintonia Group. The round was joined by other investors including Indonesia’s Reliance Modal Ventura.
Post this deal, Adrian Chng, Chairman & CEO of Fintonia Group has joined CredoLab’s Board of Directors. The freshly raised capital, which is almost twice the amount CredoLab was seeking to raise, will be utilized by increasing its product offerings and expanding its operations to help the underbanked population.
CredoLab envisions to improve the financial inclusion and financial access for underbanked consumers, and also elevate their standard of living by partnering with banks, consumer finance, and other retail lenders. Through its credit assessment mobile app, CredoApp, collects a variety of meta-data from the user’s phone to create “anonymised digital footprints”. Then, leveraging on AI, it generates their digital credit scorecards, which results in significant improvement in credit risk prediction when compared to traditional methods.
This proves to be a meaningful tool for the underbanked population, who still do not rely on banking and financial services. So, when it comes to showing their personal banking history to have a loan sanctioned from a financial institution or some other money lenders, CredoApp comes to their rescue with this solution.
CredoLab Co-Founder and CEO Peter Barcak, in an official press statement, says,
By addressing the huge market demand for financing in emerging markets, CredoLab is seizing a leadership position in advancing credit access and filling the void created by the banking infrastructure and logistical challenges in the developing world.
The firm’s clienteles includes over 10 financial institutions throughout the Asia-Pacific region, and it aims to double this number within the next six months. Not only this, it intends to reach profitability by this year end by generating more than a million credit scores for its users.
