Converging the power of mobile credit risk scoring and digital fraud management technology to access Southeast Asia's 400 million unbanked and new-to-credit population

SINGAPORE - Media
OutReach - 16 June 2020 - GBG (AIM:GBG), the global technology
specialist in fraud and compliance management, identity verification and
location data intelligence today announced a technology partnership with CredoLab, the leading developer of bank-grade
digital scorecards based on privacy-consented and permissioned smartphone metadata,
to easily and confidently assess the creditworthiness of any applicant, including
the unbanked and underbanked. While banks in Indonesia have tapped on local bureaus,
telcos, and e-commerce providers for data to perform credit and fraud checks,
data continues to be fragmented and unreliable, contributing to high
non-performing loans, low approval rates and a high level of fraud. This
technology partnership will help brick-and-mortar and digital banks deterred by
a lack of data to leverage on mobile phone digital footprints to process
banking and credit applications and provide financial empowerment to all new-to-credit,
new-to-bank, and gig economy workers of the region.

Of the nearly 400 million adults in
Southeast Asia^[1],
only 104 million are fully "Banked" and enjoy full access to Financial Services. Another 98 million
are "Underbanked", with a bank account but insufficient access to credit, investment and insurance, while
198 million remain "Unbanked" and do not own a bank account. Millions of small
and medium enterprises also face large funding gaps. However, the booming
internet economy, which is predicted to reach US$300 billion in 2025, sets the
stage for the lending industry to grow by more than 2 folds by using digital
technology to their advantage.

"We are very excited with this
partnership between GBG and CredoLab. By assimilating metadata on consumers'
digital footprint and behavioural intelligence into GBG Instinct digital fraud
management platform, we are seeing an uplift in credit and fraud risk
protection by up to 40%. This convergence between mobile credit scoring and
digital fraud technology helps established and digital banks and lenders
onboard quality customers within the financially excluded population," said
June Lee, Managing Director of APAC.

GBG offers an end-to-end digital fraud and
compliance solution for banking and non-banking financial institutions looking
to onboard and transact with their customers quickly, safely, and securely. With
GBG Instinct, banks, lenders, and mobile wallets can leverage an orchestration
layer to perform multiple data callouts to CredoLab's cloud service. It only
takes seconds, as opposed to days, to analyse mobile behavioural data and
calculate the risk score for any individual to be onboarded.

The result is of the partnership sees an
uplift in scorecard predictiveness by up to 39.9%, drop in cost of risk by up
to 21.9%, and increase in approval rates of up to 32%.

"Banks and lenders always grapple with the
question of "can a customer pay back" and "will a customer pay back" during the
onboarding journey. While GBG's fraud solution flags out suspicious behaviours
of customers who "cannot pay", CredoLab's behaviour risk score, lowers false
positives and false negatives on delinquent behaviours to discern if a customer
"will not pay" explained Peter Barcak, CEO and Co-Founder, CredoLab.

In Southeast Asia, which has 360 million
internet users, this partnership provides a gateway into accessing the largely
untapped unbanked and new-to-credit populations, and the thriving gig economy workers
of the country.

Today GBG works with more than 100
financial institutions across the region with active implementations in more
than 30 countries; CredoLab has delivered alternative credit risk scores to 7 Indonesian
lending businesses amongst over 70 others across 21 countries. The partnership will
enable all Indonesian banks, neo banks, and digital lenders to access and
approve quality customers with the intelligence required to accelerate
onboarding, detect fraud, and reduce operational costs.

About GBG

GBG offers a range of solutions that help
organisations quickly validate and verify the identity and location of their
customers. Our market-leading technology, data and expertise help our customers
improve digital access, deliver a seamless experience and establish trust so
that they can transact quickly, safely and securely with their customers
online.

Headquartered in the UK and with over
1,000 team members across 16 markets, we work with 19,000 customers in over 70
countries. Some of the world's best-known businesses rely on GBG to provide
digital services and keep the economy moving, from US e-commerce giants to
Asia's biggest banks and European household brands. 

To find out more about how we help our
customers establish trust with their customers, visit www.gbgplc.com/apac and follow us on LinkedIn and Twitter @gbgplc.

About CredoLab

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 21 million loan
applicants across 70+ lending partners, our AI-based algorithm crunches millions
of datasets from opt-in smartphone metadata to find the most predictive behavioural
patterns before converting them into alternative credit scores. These enable
any lender to make the most granular assessments possible of their applicants.

Established in Singapore in 2016, CredoLab
has powered well over USD 1 Billion in loans issued after analysing about 1
trillion data points across 21 countries. We are backed by Fintonia Group,
FORUM, and Walden International.

To find out more about CredoLab, visit https://www.credolab.com/about and follow us on LinkedIn and Twitter @CredoLab.