CredoLab, a Singapore-based developer of bank-grade digital credit scorecards based on anonymous smartphone metadata, has partnered with iovation, a TransUnion company specialising in device-based fraud detection and authentication solutions.
CredoLab is integrating iovation’s technology into its own to reduce fraudulent loan and credit card applications while optimising digital customer onboarding for banks and non-bank lenders worldwide, starting with Southeast Asia.
CredoLab is leveraging iovation’s FraudForce with CredoLab’s CredoApp, CredoSDK and CredoApply. FraudForce helps banks and lenders distinguish fraudulent from legitimate transactions by evaluating associated accounts and devices, past device history, and suspicious device behaviors. With the addition of FraudForce, CredoApply becomes an even stronger digital onboarding mobile app. CredoApply provides superior device intelligence encompassing 45 application fraud checks, home and work address verification, employment verification, KYC documents collection and alternative credit scoring. It is able to turn even unbanked users’ “thin files” into “thick files”.
Peter Barcak, CEO and co-founder of CredoLab, said, “Credit scoring has moved beyond the traditional to include understanding and interpreting repayment behavior through a combination of traditional and smartphone data points. iovation provides next generation digital data analysis to help confidently identify good customers and fraudsters.”
“As credit applications increasingly go online, so does fraud. In fact, iovation documented a 575% increase in online synthetic identity fraud against our financial services customers from 2015 to 2018,” said iovation Vice President of Global Partnerships, Ed Wu. “We’re looking forward to helping CredoLab empower its customers to make sound credit decisions through the power of device intelligence.”
Southeast Asia is the most vulnerable region to fraud compared to the rest of Asia Pacific revealed a 2019 report by AppsFlyer, titled ‘Fraud rising: How bots and malware are compromising APAC’s Apps’. In Singapore, the region’s financial hub, fraud remains rampant despite a decline from 37.2% (2018) to 31.3% in 2019.
The CredoLab - iovation partnership supports CredoLab’s mission to work with banks and non-bank lenders in Singapore to improve financial inclusion and access to credit for consumers and small businesses left out of the traditional financial system. The integration of iovation’s FraudForce with CredoApp, CredoApply and CredoSDK offers banks and lenders the ability to evaluate potential customers
in a secure, transparent and cost-effective manner. Integrating FraudForce also helps CredoLab offer a one-stop-shop solution for banks and lenders to accurately score the underbanked, the new-to-credit and any applicant with a “thin file”.