Chester-based ID verification company GB Group (GBG) said on Thursday it will buy a minority stake in Singapore-based CredoLab, a developer of bank-grade digital scorecards.
“GB Group, the identity data intelligence specialist, is leading the US$7.0 million first close of a Series A investment into CredoLab, a developer of bank-grade digital scorecards headquartered in Singapore,” said GBG.
“In an all-share transaction, GBG will purchase a minority stake in CredoLab for a total consideration of US$3.0 million.”
Established in 2016, CredoLab develops artificial intelligence driven bank grade digital scorecards for businesses that need to assess an applicant’s risk profile.
“A closer collaboration with CredoLab will enhance GBG’s digital on-boarding solution and allow the company to reach new fintech and neobank market segments …” said GBG.
“In exchange for GBG’s minority stake in CredoLab, GBG will issue to CredoLab 321,882 Ordinary Shares of 2.5 pence each in GBG …”
GBG employs around 1,000 staff in 16 countries and works with 20,000 customers in over 70 countries.
GBG’s customers include US e-commerce giants, Asia’s biggest banks and European household brands.
GBG CEO Chris Clark said: “GBG’s fraud and compliance solution allows financial institutions to onboard and transact with their customers quickly, safely, and securely.
“We have experienced first-hand CredoLab’s capabilities from our ongoing commercial partnership.
“The company’s AI-based proprietary technology will not only complement our existing offering but also provide critical behavioural risk reference data from good customers who are financially excluded.”
CredoLab CEO Peter Barcak said: “Banks and lenders always grapple with finding data that allows them to assess customers’ affordability and overall creditworthiness.
“While GBG’s fraud solution flags suspicious loan and credit card applicants during the onboarding journey, CredoLab’s behavioural risk score and algorithm lowers false positives and false negatives on delinquent behaviours to discern the probability of a customer to repay.
“CredoLab will use the funds to consolidate its leadership in Southeast Asia and expand its presence in key markets across Asia, Latin America, Europe, and Africa.”