CredoLab, which made its Finovate debut at FinovateAsia last fall, has teamed up with all-digital CIMB Bank Philippines to help improve financial inclusion in the country. The bank is using CredoLab’s white label solution, CredoApp, to gain instant insight into the creditworthiness of loan applicants. CIMB Bank hopes to leverage the AI-powered technology to better serve underbanked populations with “thin-file” credit histories.
“With CredoLab, we are now focusing on making our application and underwriting process more efficient so that we can extend credit to a broader market without compromising on our cost of risk,” explained CIMB Bank Philippines CEO Vijay Manoharan. “In this way, we can further drive financial inclusion by enabling more Filipinos access to formal credit lending facilities efficiently.”
Personal loans are the first products to be introduced as part of this collaboration between CIMB and CredoLab. Customers can now apply for a loan of up to one million Philippine pesos ($19,000 USD) and receive in-principle approvals via their CIMB app. The bank said that within the first two weeks of launching the partnership, more than 1,000 customers have already been scored.
“CIMB Bank has been steadfast in adopting the latest technologies to present the best banking solutions to their customers,” CredoLab CEO and co-founder Peter Barcak said. “We are delighted that through our plug and play solution that complements and boosts their existing processes, we are powering CIMB Bank Philippines’ latest effort in driving financial inclusion by providing credit to those who lack a traditional credit background.”
CredoLab demonstrated its CredoScore solution at FinovateAsia 2018. The technology leverages AI-backed algorithms to turn the digital footprints of customers into highly predictive scorecards. With more than 50,000 data points from the customer’s mobile device – collected with the customer’s permission and privacy consent, CredoScore enables financial institutions to gain more accurate insights and make more informed decisions.
Founded in 2016 and headquartered in Singapore, CredoLab has raised more than $3 million in funding from investors including Walden International, Fintonia Group, and FORUM. The company was featured in FintechNews Singapore’s 29 Hottest Fintechs in Singapore in 2019 roster earlier this year.