HSBC Asset Management has led a $4 million seed funding round for Bizbaz, a Singapore-based startup leveraging non-traditional data to help financial firms assess credit risk.
In Southeast Asia, over 70% of the region’s 680 million population is unbanked, lacking access to credit data. However, mobile phone penetration stands at 67%, allowing Bizbaz to harness a wealth of lifestyle, social, and financial data to create risk profiles for individuals.
The company claims its technology enables financial services firms to effectively reach and serve unbanked and underbanked populations while also lowering their operational costs.
Hayk Hakobyan, CEO of Bizbaz, stated, “Most financial institutions and fintech companies still rely on outdated financial-history-based credit risk systems. Our solutions analyze both financial and non-financial data, which significantly impact risk assessment for loans, insurance, and other financial services.”
Remi Bourrette, head of venture investments at HSBC Asset Management, commented, “In ASEAN, the middle class is expected to more than double by 2030, reaching 334 million people. Financial services are likely to expand at a similar pace, if not faster. Our investment in Bizbaz offers a compelling opportunity in response to this market shift in the region and other developing economies.”