Singapore's CredoLab now in Kenya
Singapore-domiciled credit rating fintech CredoLab has launched in Kenya.
Its arrival in the market is set to spark further competition in the credit rating sector which is currently controlled by Metropal, Creditinfo and Transunion Africa.
The company is seeking to drive financial inclusion by credit scoring more people, especially those who are new to bank and new to credit.
“With the trend in Kenya of banks shifting from traditional banking halls to digital platforms, our alternative credit scoring technology is perfectly timed to help lenders provide access to sections of the population that have been traditionally financially excluded” CredoLab’s head of sales for Europe and Africa Michel Massain said.
CredoLab collects more than 50 000 data points from a customer’s smartphone through its mobile technology and turns them into more than 500 thousand behavioral features.
According to the firm, the collected data is anonymised, securely stored within the country, and never shared with third parties.
All digital scorecards are customised for clients, whose requirements, risk appetite and credit scoring thresholds are unique.
This use of non-traditional data and predictive analytics for credit scoring enables lenders to expand their pool of borrowers while keeping risks under control.
“Millennials, new graduates, self-employed and other thin credit history customers increasingly try to access credit, but to no avail. Here, digital scorecards help provide predictive insights into borrower behaviour, thereby redefining credit-decisions,” Massain said.
The firm’s chief executive Peter Barcak on the other hand hopes that CredoLab will help to remove a key barrier to entry in Kenya, among other African countries and complement traditional credit scoring systems with the power of behavioural data.
“We are excited about our launch into Kenya, where a percentage of people remain locked outside of the mainstream economy because they do not have the credit history in the traditional sense to participate in it,’’ Barcak said.
CredoLab was launched in 2016 in Singapore to address the lack of instruments to assess the credit worthiness of nearly two billion consumers globally.