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Industry
Digital non-bank consumer lender
Country
Mexico
Solution
RiskSeal Digital Credit Scoring
Table of contents
Client’s bio
AvaFin is a fintech company specializing in innovative consumer financial solutions. The company leverages advanced technology and data analytics to offer convenient loan products with minimal time to cash.
Operating in five countries, including Mexico, AvaFin has served over 3.8 million verified clients and issued loans exceeding €1 billion. In Mexico, AvaFin offers online personal loans of up to $60,000, through a simple, fast, and secure application process.
Challenge
AvaFin identified a significant opportunity to serve Mexico’s underserved financial population. These potential customers, who lacked conventional credit histories, represented an untapped marketof creditworthy individuals eager to access financial services.
Without comprehensive assessment tools, AvaFin could not fully evaluate the financial reliability of these applicants, leading to very conservative approach decisions, and missed opportunities for AvaFin and its customers.
Solution
By adopting the RiskSeal Digital Credit Scoring platform, AvaFin gained the ability to analyze customers' digital footprints and collect over 400 alternative data points for each applicant, including:
Digital footprints from social media, messaging apps, and online platforms.
Email data, such as email age, domain analysis, and data breaches.
Phone number insights, including disposable number detection, online registrations, and telecom details.
Identity verification powered by face recognition, name matching, and location checks.
Result
The two diagrams below illustrate the impact of RiskSeal credit and trust scores on bad rates.
Credit Score
The default rate decreases as credit scores rise: 38% for scores between 200-399, 34% for 400-599, 28% for 600-799, and 19% for scores above 800.
This trend confirms that RiskSeal effectively assesses credit risk, helping businesses identify high-risk and low-risk customers
Trust Score
The default rate decreases as trust scores rise: 40% for scores between 30-49, 35% for 50-69, 30% for 70-89, and 25% for scores above 90.
This finding demonstrates the predictive power of the RiskSeal model in assessing risk levels.
Client reference
RiskSeal’s real-time data has transformed our customer onboarding process. By detecting fraud early and enhancing our credit scoring capabilities, we’ve seen a significant positive impact on conversion rates.
Working closely with RiskSeal alongside our data science and risk analysis teams has allowed us to refine and optimize digital signal features and scoring models. This ongoing partnership has been vital in improving our decision-making processes and elevating our overall risk management framework.
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