Quod, Brazil’s new credit bureau owned by the country’s biggest banks, aims to improve credit scores with deeper data pools and better analytics
Brazil’s biggest banks are set to use better tech for lending decisions with the recent launch of Quod.
Quod is the first Brazilian company to focus on positive credit scoring, and according to its CEO, Rodrigo Abreu, artificial intelligence is part of the “company’s day to day”.
Until now, Brazil has relied on negative-only credit risk information – such as payment delinquencies – and Quod was launched to change this.
Brazilian banks are in the very early stages of using artificial intelligence for credit risk analysis, although other analytics software has been in their IT portfolio for some years.
Quod, said Abreu, was created with focus on big data analytics. “We tied up with LexisNexis Risk Solutions to build a credit risk analysis platform, from zero.”
The infrastructure provides tools for big data analytics for risk management and fraud prevention.
The system could be further boosted by combining different sources of data, both structured and unstructured, and combining it with public data, using AI, machine learning and other technologies.
Abreu said he believes that the positive credit registry model will improve risk analysis.
“Today in Brazil, credit analysis is based on default rate, the failure to pay, and inactivation. But it is a restricted, poor vision. It only points out if there was a problem in the past and it is limited because it only covers consumers who have had default in the relation of credit consumption.
“On the other hand, the positive credit has a wider range and allows more advanced modeling technology,” the CEO explained.
By bringing together bigger pools of data and new technologies, lenders can get a more detailed risk profile.
“The more information you have, the better you will determine the risk, because it’ll be individualized,” said Abreu. “And you can stipulate an interest rate more in accordance to the profile. In long-term, the expectation is to reduce the spread, offers credit at attractive rates and increases competition in the market.”
Get a deep understanding of how Latin American banks and fintechs are using artificial intelligence for credit decisions with iupana‘s new premium research report:
Innovations on top of old tech amplify challenges for bank cybersecurity in Argentina
Sao Paulo-based neobank prioritizes data analytics, shuns blockchain
Digital lending startups set to get cheaper, easier funding as investors look at new asset classes
Banks and startups in Latin America are using new technology that will cut costs for cross-border payments and currency conversion
An in-depth study of Citibanamex’s digital strategy
Five months in, no companies have requested approval to operate under Mexico’s Fintech Law
How well do you know the strategies of your competitors when it comes to digital transformation in Latin American banking?
Take our quiz to see!
Can I bring you dinner?
Which bank is tapping its POS network and building APIs to offer a delivery service that it hopes will boost client loyalty?
New challenger bank
A new Brazilian challenger bank called C6 Bank is close to launching. It’s billing itself as the #NextBigFin. The bank is backed by the chairman of which traditional bank?
Mexican banks are starting to use artificial intelligence tools. What’s the main application of the technology currently in Mexican banks?
What’s the biggest digital threat to traditional banks today?
Seems you’re a bit behind on what the rest of the market is doing…
Why not sign up for iupana‘s weekly newsletter to get exclusive news and analysis each Monday on how technology is transforming financial services in Latin America and the Caribbean? (It’s free!)
Not a bad effort…
Want to improve your score for next time? Sign up for iupana‘s weekly newsletter to get exclusive news and analysis each Monday on how technology is transforming financial services in Latin America and the Caribbean. (It’s free!)
Great effort – you’re clearly an expert in technology in financial services in Latin America!
Show your friends and colleagues on social media how well you did with these handy sharing buttons.
- Bancolombia’s Nequi looks to QR, push messages
- Alipay hunts for LatAm opportunities after Openpay deal
- Mexico’s banks work on culture change to stay ahead of Big Tech
- IFC fintech investor calls on LatAm entreprenuers to pay it forward
- Mastercard plans social payments, authentication advances in LatAm
- Santander’s pace of digital onboarding in LatAm shows signs of slowing