MANILA, Philippines, Oct. 3, 2019 /PRNewswire/ — CIMB Bank Philippines has partnered with with Singapore-based fintech CredoLab to extend financial products to underbanked customers in the Philippines, starting with personal loans.
CIMB Bank Philippines uses CredoApp (CredoLab’s white label mobile application) to instantly score applicants, including “thin-file” customers who lack sufficient or any traditional credit bureau data. With CredoLab’s artificial intelligence-based credit scoring capabilities, Filipinos can apply for a credit loan of up to P1,000,000 even in the absence of fulfilling traditional banking requirements. Within 10 minutes, Filipinos can enjoy in-principle approvals on their personal loans through the CIMB App and without having to step foot into or queue at a CIMB bank branch.
Commenting on their latest digital initiative, Vijay Manoharan, CEO of CIMB Bank, Philippines, said, “As an all-digital bank, we are continuously looking for ways to improve the banking experience for our customers. 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. In this way, we can further drive financial inclusion by enabling more Filipinos access to formal credit lending facilities efficiently.”
CredoApp’s bank-grade algorithm analyses nearly 500,000 features from opt-in and permissioned smartphone metadata to find the most predictive behavioural patterns before converting them into credit scores, in a matter of seconds. This enables banks like CIMB to understand the repayment behaviour and creditworthiness of their applicants with greater accuracy.
Within two weeks of the launch, the partnership has already scored over 1,000 customers all in less than 10 minutes with minimal traditional data requirements. CIMB Bank Philippines expects this number to grow at an exponential rate in the weeks to come as the bank steps up its marketing efforts to raise customer awareness and interest in CIMB’s personal loan product.
Peter Barcak, CEO and co-founder of CredoLab, said, “CIMB Bank has been steadfast in adopting the latest technologies to present the best banking solutions to their customers. We are delighted that through our plug and play solution that complements and boosts their existing processes, we are powering CIMB Bank Philippines’ latest efforts in driving financial inclusion by providing credit to those who lack a traditional credit background.”
This partnership with CredoLab supports CIMB Bank Philippines’ plans to onboard more digital-savvy Filipinos by the end of 2019 by using the country’s growing smartphone penetration usage to their benefit.
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CredoLab develops bank-grade digital scorecards for banks, consumer finance companies, auto lenders, online and mobile lenders, insurance companies, and retailers from the best alternative data source – smartphone device metadata. Built on over 1 trillion data points across 51+ lending partners, our AI-based algorithm crunches nearly 500,000 features from opt-in smartphone metadata to find the most predictive delinquent behavioural patterns before converting them into credit scores. These enable any lender to make the most granular assessments possible of their applicants. With an aggregate of 16 million application downloads, our clients have seen 20% higher new-to-bank customer approvals, up to 15% reduction in non-performing loans, and up to 22% dip in fraud rate.
Established in Singapore in 2016, CredoLab has powered over USD 1 billion in loans across 15 countries. We are backed by Fintonia Group, FORUM*, Walden International and GoBear.
CredoLab is venture built by FORUM.
About CIMB Bank Philippines
CIMB Bank is one of ASEAN’s leading banks and is present in over 16 global markets. With the establishment of CIMB Bank Philippines, CIMB is able to extend its reach and transform the Filipino banking experience with their all-digital mobile-first bank app, CIMB Bank PH.
Through the CIMB Bank PH mobile app, CIMB Bank Philippines offers 24/7 safe and secure banking, seamless account opening in just 10 minutes, best-in-market interest rates, no initial deposit or maintaining balance requirements, convenient deposit and withdrawal locations, easy personal loan applications, and zero transaction fees.
Within a few months, the CIMB PH team was able to bag the prestigious Global Finance’s Best Consumer Digital Bank Award for 2019, Digital Banking Initiative of the Year – Philippines Award and the Mobile Banking Initiative – Philippines Award during the 2019 ABF Retail Banking Awards as well as the Philippines Best Employer Brand Award 2019 from the Global Employee Brand Awards.
To learn more, visit us at www.cimbbank.com.ph or like us on Facebook and follow us on Instagram @CIMBBankPH. Download CIMB Bank PH app in App & Play stores today.