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In this conversation, we chat with Michele Tucci, the Managing Director in North and Latin America and Chief Strategy Officer of CredoLab, the largest developer of bank-grade digital credit risk scorecards based on mobile device data.
An enthusiastic strategic thinker and business developer, Michele has 19 years of demonstrable track record of building and marketing online, mobile and offline payments products, consumer lending, cards, and FinTech solutions. Before joining CredoLab, he worked with Intesa Sanpaolo Bank, Capital One Bank, MasterCard, Telecom Italia Mobile and conducted business in 43 countries across the US, Asia, Australia, Europe, Russia, the Middle East, and Africa.
In Partnership
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1’32”: Michele’s foundational experiences & the core proponent to his entrepreneurship
2’43”: The behavioural influences between credit cards in America vs Europe & the data landscape in the early 2000s
8’51”: The role of Mastercard in Michele’s journey & how issuers thought about the role of payment rails on the customer journey
16’19”: How data spoke tothe human nuances around financial behaviour
20’48”: The evolution of how different players created financial networks in different geographies
24’09”: Credolab - the core problem it solves for & where it is today
32’50”: How Credolab uses pattern-recognition to develop user personas to inevitably inform risk profiles
36’53”: The development of extracting insights from digital footprints of users & how this results in sophisticated AI algorithms that banks compete for
39’54”: Channels to use to connect with Michele & learn more about Credolab
Sneak Peek:
Michele Tucci: …we don't take only that behavior into account. We analyze about 10 million of micro behavior patterns to identify those that are most predictive for risk and probability to default. So, we look at the combination of up to 50 micro behavioral patterns that have high information value. So now, we go into the more technical stuff, high stability and low correlation with each other. So, we don't want to make a judgment on one behavior only, but we use a combination of those micro behavioral patterns to calculate the score, and the score becomes an input into the existing underwriting model of the client. So we are not here to substitute what FICO does or TransUnion does.
We are here to compliment the assessment of a particular individual with behavioral data. There are different benefits to that. So behavioral data, in our experience, has low correlation with transactional data. Think of open banking, no PSD2 in Europe or a plead in the US. Low correlation with credit bureau scores, low correlation with social demographic data, the ones that you provide as an applicant when you fill in the application form. So, imagine we collect, and I think as of today, we are the only ones in the market that can collect keystroke patterns and UI interactions and analysis of gestures in the app. So, on top of digital footprints coming from the analysis of the metadata of your operating system, we can also analyze…
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