#NewsBytesExclusive: How Russian startup JuicyScore is shaping a credit fraud prevention strategy
Last updated on
13 Aug 2021, 17:15
Present in more than 20 countries in just five years of startup, JuicyScore is a sophisticated risk management and fraud prevention solution for financial institutions.
During our interaction with the company’s co-founders, Pavel Bolshakov and Mikhail Marchenko, we got a glimpse of their start-up journey, the difference between JuicyScore and its plans for the Indian markets.
Here is their story.
JuicyScore is primarily aimed at lenders, banks and insurance companies
Pavel and Mikhail both hold doctorates. in Applied Mathematics from Lomonosov Moscow State University where they were classmates. In 2016, they co-founded JuicyScore with the idea of extracting the proverbial juice from non-personal data, providing end users with increased security.
Currently in its 13th iteration in five years, JuicyScore caters to banks, insurance companies, and lenders, typically before they onboard a client.
Privacy is a key requirement for next generation internet products: Pavel
JuicyScore’s independent rating system scores customers based on non-personal data in four main categories: login data, device data, software data, and behavior data.
So instead of knowing the end user and their transaction details, JuicyScore is able to use non-personal details like mouse movement and tab switching to tag customers.
JuicyScore claims that its reliable behavioral scoring gives customers up to 10x higher ROI.
The USP of JuicyScore is that it does not collect any personal data
Pavel explained that developing JuicyScore was no easy task (no surprises). The company has launched more than 350 custom tests that detect whether the end user’s device is real or if it is just virtualization. Obviously, they can’t focus on personal data because they don’t have it, Pavel added.
Although more complex, JuicyScore can mark SMEs, but also corporate borrowers
Pavel claimed that JuicyScore’s device-based behavioral scoring and fingerprinting technology can be used to rate SMEs and large businesses when they apply for loans. However, the process is more detailed since the average SME loan is much larger and riskier than personal loans.
In about 10% of cases, JuicyScore helps ecommerce platforms and airlines assess customers, monitor refunds, and maintain balanced portfolios.
JuicyScore now plans to enter the Indian market
Additionally, Mikhail explained that JuicyScore plans to enter the Indian market with the aim of providing cutting edge services by tailoring the product to the subcontinent.
He added that the company will hire the best professionals in the market and announce their team in India soon. Work is underway to establish a solid foundation and begin operations.
India’s transition to digital banking prompted entry of JuicyScore
In a related vein, Pavel mentioned that India is a promising market for JuicyScore as the government is actively investing in the transition from bank to branch to digital bank. The founders also observed this trend in other emerging markets, notably Vietnam and Indonesia.
Additionally, the pandemic-fueled transition to digital lending in India’s technologically mature, person-focused market has also prompted JuicyScore to consider expanding its operations here.
As online loans reach a wider audience, the possibilities for fraud increase
Emphasizing the impact of the COVID-19 pandemic on financial markets, Mikhail stressed that financial institutions need to restructure as more end users now obtain financial services online.
While the transition has helped banks and lenders reach a wider audience, it increases the likelihood of loan fraud, personal data leaks, and cyber attacks, creating a niche for anti-fraud offerings and risk management report from JuicyScore.
JuicyScore is at the start of discussions with investors
JuicyScore’s technology has demonstrated that personal data is not mandatory for fraud prevention. It is an ambitious and forward-thinking company that aims to be present in 40 countries over the next 12 months.
Although the founders have operated by seed so far, Mikhail said JuicyScore is in the early stages of talks with anonymous investors to raise capital in the fourth quarter of 2021.
We wish them good luck !