Kredico is an online lending platform, which enables individual borrowers and small businesses to access loans by using borrowers’ social network data in addition to their payment history for assessment of their creditworthiness. It helps banks to better understand their customers and it brings new customers to banks too. Banks may offer new products to its customers using Kredico’s online platform benefiting from its low cost of operations.
The businesses and individuals are classified by risk level and lenders can choose the level of risk they are willing to accept. Traditionally, small businesses have relied almost entirely on banks for funding. However in recent years, this has changed as banks have tightened their lending criteria significantly. Accordingly, new entrants with less or no credit history have an entry barrier and almost no access to finance. A growing number of businesses are therefore exploring alternative sources of investment.
Kredico has a blended credit scoring (powered by GDS Links) approach taking into consideration alternative data sources, such as the available social media records, POS and cellular intelligence, in the case of insufficiency of available data, Kredico (powered by META) applies psychometric tests to evaluate the risk profile of the borrower.