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AvaFin increases approval rates with RiskSeal Digital Credit Scoring platform

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.

About RiskSeal

RiskSeal Digital Credit Scoring is a leading alternative data provider in Mexico. The solution offers insights for credit scoring based on the user's digital footprint. RiskSeal collects hundreds of data and delivers it in a format optimized for scoring models.
RiskSeal partners with various fintech companies, lenders, and financial institutions in Mexico, including AvaFin.

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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.

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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.

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Result

The two diagrams below illustrate the impact of RiskSeal credit and trust scores on bad rates.

Credit Score

Customers with credit scores below 200 have the highest default rate at 43%, making them the riskiest group.
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

Customers with trust scores below 30 have the highest default rate at 44%.
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.

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Client reference

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RiskSeal’s real-time scoring has transformed our onboarding. We’re now catching fraud earlier, improving scoring accuracy, and lifting conversion rates. Working side-by-side with their team and our own data scientists and risk analysts, we refined digital signal features and optimized our models

This strengthened our decisions and tightened the risk framework. Anyone battling fraud losses or slow approvals should test RiskSeal on your own data and see if it moves the needle.

Artjoms Jefimovs
Chief Risk Officer at AvaFin
2x
increase in approval rates
25%
reduction in default rates
26%
decrease in KYC costs

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