Singapore-based Credolab has partnered with Circulo de Credito to provide innovative credit, risk, and fraud scoring solutions to Mexico. Circulo de Credito will offer a Digital Behaviour Analysis Solution, operated by Credolab, through its API marketplace.

The solution integrates behavioural insights about risk and fraud and will be available for over 3,500 B2B clients, including banks, retailers, and fintechs. Credolab’s SDK will allow Circulo de Credito to deliver to its B2B clients a stronger predictive power. This aims to improve the risk and fraud assessment of any borrower’s likelihood of default, including for thin-files, gig economy workers, millennials, small businesses, and unbanked individuals.

The partnership’s objectives Credolab’s platform leverages proprietary machine-learning algorithms to detect approximately 10 million behavioural patterns, such as battery usage and the most frequently downloaded application category. Through this, financial institutions can improve their decision-making processes without managing any personal data. According to the company’s officials, the lack of predictive data still represents one of the main issues for financial institutions. Credolab’s objective is to support entities in making better decisions and generate accurate risk portraits for previously ignored potential borrowers by using data from smartphones.

Through the partnership with Circulo de Credito, the company wants to promote financial inclusion in Mexico by helping lenders understand their clients better. Circulo de Credito’s representatives highlighted that the collaboration allows the company to extend its assistance to more enterprises and individuals, enabling them to better understand financial information. This aims to allow them to achieve their economic and financial goals, as the company is on a journey to promote financial wellness and foster trust between lenders and their beneficiaries. Financial inclusion in Mexico The United Nations Sustainable Development Goals (SDG) integrated financial inclusion for 2030, the target being to substantially increase access to banking, insurance, and a variety of financial services for marginalised populations. The Mexican government launched the National Survey of Financial Inclusion in 2012 to gather statistics on financial inclusion in the region.

The most recent version of the survey, released in 2021, showed that 57% of men and 43.9% of women indicated they had a bank account, while only 14.9% of men and 2.4% of women had a savings account. The statistics denote a minimal penetration of the financial system in the general population. The Financial Inclusion Index, which measures all dimensions of financial inclusion in a single statistic, shows gender, regional, and urban-rural disparities. Also, marital status has a negative impact on financial inclusion, with married individuals having access to fewer services, than unmarried ones.

The results of the survey indicate Mexico’s need to develop and implement nuanced strategies of financial inclusion to bridge the aforementioned disparities. About Credolab and Circulo de Credito Credolab develops bank-grade digital scorecards and data enrichment solutions, providing lenders, risk officers, and marketers with privacy-consented and anonymous smartphone metadata, a previously untapped, yet predictive source of behavioural data. Currently, the company’s toolkit is used for over 200 corporate clients across nine verticals, including banks and neobanks, BNPL, digital lenders, credit bureaus, ride-hailing and EWA apps, insurance companies, and crypto lenders. Based in Mexico, Circulo de Credito is a regulated Credit Information Society that provides strategic credit data, decisions, and digital solutions to enable companies to run profitable financial services in the region.

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