CredoLab, a developer of smartphone-based digital scorecards for banks and non-bank financial institutions, is expanding into insurance credit scoring by making its smartphone credit scoring solution available to insurers and personal finance comparative websites worldwide.
Launched today, CredoInsure is an extension of the company’s current smartphone behaviour-driven credit scoring solution for banks, consumer finance companies, digital lenders, auto lenders and retailers. CredoInsure helps insurers analyse the creditworthiness of a customer in less than 30 seconds through a set of solutions that come in the form of a standalone white label solution, an API or as an additional characteristic in the client’s existing pricing engine. CredoInsure is targeted at insurers facing increasing customer acquisition costs, low persistency, and high number of lapsed premiums.
Peter Barcak, co-founder and CEO of CredoLab, said, “We see tremendous potential in using AI to help the insurance industry through smartphone behavioural data that can predict consumer repayment behaviour. Our technology helps insurers increase their product profitability in year one while also improving the number of paying customers over a longer period of time. We will also work with personal finance comparative websites that serve as platforms in pre-selecting and pre-qualifying leads for their insurance partners.”
CredoLab’s expansion into insurance scoring marks an organic move by the company into markets that remain significantly under-penetrated at around 2%, significantly below the global average penetration rate of 3.5%. The company’s move into this space underscores an expanding middle class in need of personal, life and travel insurance products as their incomes rise and standards of living improve.
Currently operating across 15 markets worldwide, CredoLab will target the personal, life and travel insurance space in its existing Asian emerging markets of Vietnam, Indonesia, Philippines and India. Last year CredoLab partnered with Singapore-based personal finance comparison website GoBear to extend its reach to the underbanked market in Southeast Asia through its Easy Apply smartphone app; allowing banks, financial institutions and lenders to extend personal loans, credit cards and insurance products via non-traditional smartphone-based credit scoring.
CredoInsure analyses over 500,000 features from a user’s smartphone, working in harmony with existing technology to connect the dots that traditional methods can’t. Via the use of artificial intelligence and proprietary algorithms, CredoLab turns mobile device metadata into highly predictive credit risk and anti-fraud scorecards. Users’ smartphone behaviour is tracked anonymously through their digital footprint.