Credolab & Circulo de Credito introduce credit-scoring solutions in Mexico

By Gloria Mathias

Credolab has partnered with Círculo de Crédito to promote financial inclusion in Mexico by providing credit, risk, and fraud scoring solutions.

Credolab uses machine learning algorithms to detect more than 10 million behavioural patterns, such as battery usage and the most frequently downloaded app category. So far, this has made credit and financial institutions accessible to over 20 million Mexicans, to make 200 million credit decisions.

The company’s toolkit is already in use for over 200 corporate clients across 9 verticals in 38 markets, who have seen results like a 22% drop in fraud costs and up to a 32% increase in approval rate.

Círculo de Crédito will exclusively offer Credolab’s Digital Behaviour Analysis Solution through its API marketplace. This solution includes behavioural insights about risk and fraud, available for over 3,500 B2B clients, including banks, retailers, and FinTechs. With Credolab’s SDK, Círculo de Crédito can deliver to their B2B client’s stronger predictive power, improving the risk and fraud assessment of any borrower’s likelihood to default, even thin-files, gig-economy workers, millennials, small businesses and unbanked.

Peter Barcak, CEO of credolab, commented, “The lack of predictive data is still one of the main pain points of any financial institution. What we do at Credolab is help to make proper decisions and generate highly accurate risk portraits for previously ignored potential borrowers by using a previously untapped source of new data – the smartphone. Partnership with Círculo de Crédito allows us to promote a greater scope of financial inclusion in Mexico by helping lenders understand their clients better.”

Juan Manuel Ruiz Palmieri, CEO Círculo de Crédito shared, “Being the most innovative Credit Bureau in LATAM, our primary objective is to promote financial well-being and foster trust between lenders and their beneficiaries. By partnering with Credolab, we are able to extend our assistance to more companies and individuals, empowering them to understand crucial financial information, which in turn will help them achieve their economic and financial goals.”