Collaboration to facilitate faster, risk-based lending decisions, for new-to-credit and underbanked customers, driving financial inclusion
Mastercard today announced collaboration with Eureka AI, a leading enterprise software company based in Singapore, to seek leverage on Eureka’s innovative suite of products and solutions for customers across the Asia-Pacific region – leading banks, non-banking financial companies, insurance firms, ride-hailing, food delivery and OTT companies. With this collaboration, Mastercard customers will benefit from advanced analytics and technology solutions that will enable credit and risk scoring and faster lending decisions.
These include Credit Score and Location Check solutions that indicate the risk of loan default based on telco records, SME Score to assist creditors with credit risk assessments for small and medium businesses and OMNI market intelligence.
Through this collaboration, customers across Asia Pacific shall be served more effectively by providing unique credit risk assessment tools to creditors with an effective rank-ordering system of credit risk for small and medium-sized enterprises and consumers.
Benjamin Soemartopo, CEO, Eureka AI said, “We are thrilled to collaborate with Mastercard across Asia Pacific to bring to market a host of cutting-edge solutions to provide intelligence to financial institutions in the region. Our proprietary algorithms applied to large scale data sets make it easier to understand customer needs and risk profiles to drive greater penetration in the lending ecosystem. We aim to bridge the data divide and enable real-time structured decision making through our capabilities in advanced analytics on account aggregator data. Mastercard’s leading position worldwide as a financial services, payments and technology pioneer will enable Eureka takes its advanced analytics solutions to institutions that are looking to capitalize on the growing credit needs across various lending segments”.
Rajeev Kumar, Senior Vice President, Market Development, South Asia, Mastercard, said, “Mastercard’s collaboration with Eureka AI addresses a major challenge which lenders face in assessing the credit worthiness of thin file and new to credit customers. Today, only 15% of MSMEs in Asia have access to formal credit. Through this partnership, we will provide creditors with an efficient way to combine powerful commercial information with consumer telco and account aggregation data. This drives financial inclusion by delivering financial services, especially credit facilities, to marginalized segments like small businesses and women entrepreneurs across the Asia Pacific region”.
In 2020, Mastercard expanded its worldwide commitment to financial inclusion by pledging to bring a total of 1 billion people and 50 million micro and small businesses into the digital economy by 2025 and announced a commitment of Rs 250 crores (US$33 million) to help reboot Indian SMEs to enable business recovery amid the pandemic. Earlier this year, Mastercard in partnership with HDFC Bank, U.S. International Development Finance Corporation (DFC), and U.S. Agency for International Development (USAID) announced a $100 million credit facility to promote and encourage small businesses in India to digitize, while also helping Indian businesses, particularly those that are women-owned, to recover from the economic impacts of the pandemic.
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