Círculo de Crédito Helps An Additional 20 Million Mexicans Access Credit Using FICO Scores
Fastest-growing credit bureau in
- Círculo de Crédito has helped an additional 20 million Mexicans access credit using innovative household data
- The bureau’s solutions have seen banks make 200 million credit decisions, equivalent to 3 times the size of the Mexican active adult population
Over 3,500 lenders in
Mexicohave access to Círculo’s solutions and over 7 years have issued loans for USD$110B: an amount equivalent to 10 percent of Mexico’s GDP
- Círculo de Crédito won a 2022 FICO® Decisions Award for Decision Management Innovation
Círculo de Crédito, the fastest-growing credit bureau in
More information: https://www.fico.com/inclusion
With around 10 million Mexicans lacking enough credit history to calculate a risk score, Círculo de Crédito worked with FICO to develop FICO® Extended Score, which analyzes information on a credit applicant’s household credit history, to score people with no credit history who might otherwise find it hard to get credit.
“Mexico’s regulatory environment allows lenders to use the credit history of the people in a credit applicant’s household to score them,” said
The underbanked population in
From the perspective of the country’s banks, there was a large opportunity to bring this underserved market into the credit mainstream. Solving the credit evaluation problem would ensure that loans could be underwritten more quickly and with appropriate risk assessments.
“The credit-to-GDP ratio in
The fast growth in usage of the FICO® Extended Score matches the growing use of the standard FICO® Score in
“Having the support of a world-class company such as FICO is pivotal to our success,” said Cardini. “Círculo de Crédito is positioning itself for the next growth phase as it delivers innovation to serve a wider range of lenders and empower them to drive inclusion and profitability. The incredible growth of the Mexican fintech scene, open banking and embedded finance are all trends we are looking to serve as we become a hub for pioneering companies to solve their business challenges.”
“Financial access remains a top priority for
For its achievements, Círculo de Crédito won a 2022 FICO® Decisions Award for Decision Management Innovation.
“The judges were really impressed with the innovative approach by Círculo and FICO,” said Sibulelo Ncamani, head of operational risk and governance at Absa Bank and one of the FICO Decisions Awards judges. “By looking for the predictive options available and adapting new data, Círculo has developed a credit scoring approach which would no doubt be of interest in other markets.”
About Círculo de Crédito
Círculo de Crédito provides strategic data, decision and digital solutions to empower any company to run profitable financial services in
About the FICO® Decisions Awards
The FICO Decisions Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2022 judges are:
Sidhartha Dash, research director at Chartis
Paul Deall, head of risk, mortgages at Westpac (previous winner)
- Senthil Erulappan, director, product engineering for merchant, risk and collections at FIS
Armando Junior, general manager, risk and compliance at Dock (previous winner)
Sheila Leverone, chief marketing officer at eDriving (previous winner)
- Sibulelo Ncamani, head of operational risk and governance at Absa Bank (previous winner)
Graham Rand, operational researcher and editor of Impact
Dinesh Suresh, head, digital builds for consumer secured lending at OCBC Bank(previous winner)
The winners of the FICO Decisions Awards were spotlighted at and won tickets to FICO® World 2022, the
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, manufacturing, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
Learn more at www.fico.com.
FICO is a registered trademark of
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