Leading Global Risk Mitigation Platform Spocto–A Yubi Company Establishes Presence In MENA

spocto, a Yubi company, has launched in the Middle East and North Africa (MENA) with regional headquarters located in Dubai International Financial Centre (DIFC). As a leading risk mitigation platform, spocto is establishing a foothold in the region, with the UAE serving as a springboard for its global ambitions.

A trusted risk mitigation platform for lenders, spocto leverages artificial intelligence (AI) and machine learning (ML) to provide lenders with an enhanced customer experience and improved collection efficiencies while maintaining high compliance standards.

spocto’s suite of products implements more than 5,000 proprietary algorithms, applies ML and uses predictive AI to extract insights from otherwise ambiguous data. As a result, the risk mitigation platform provides lenders with seamless, digitally led processes and improves their financial safety net, which in turn reduces human dependency and bounce rates while increasing self-pay rates.

Gaurav Kumar, Founder & CEO of Yubi, said: “Expanding internationally from the UAE, a leading nation in financial technology and digital transformation, is an important milestone for Yubi’s global ambitions. We are confident that spocto will effectively drive our value proposition as the company helps lenders move beyond traditional credit data and leverage an AI-powered risk management solution to meet their fiduciary needs.”

Sumeet Srivastava, Founder & CEO of spocto, said: “We are excited to embark on our journey from Dubai, one of the top 20 financial centres in the world. Our presence here will enable us to build and scale our business across the region as we innovate with our partners and clients at the intersection of data, technology, and financial services. Launching in the UAE will further power our mission to provide AI and ML-powered risk mitigation, which will ensure a sustainable relationship between lenders and borrowers for years to come.”

To lead spocto’s business in the UAE and the wider region, Vikas Thapar has been appointed as Chief Business Officer (CBO). Thapar brings more than two decades of experience in Consumer Finance, Retail Banking, and Business Banking to his role at spocto. He has worked with leading financial institutions in the UAE and region including Emirates NBD, First Abu Dhabi Bank and Mashreq.

Commenting on the launch,Thapar said: “I am proud to be part of spocto’s foray into the MENA market as we introduce a collaborative, digital-first approach to risk mitigation to the financial landscape here. The impact of spocto’s first international office will be twofold: first for lenders and then for individuals and small businesses here in the region. Our platform will enable lenders and financial institutions to improve their credit decisioning and collection processes – expanding their business scope and opening up new opportunities with a wider set of customers. Ultimately, this will help enhance the integrity of the lending ecosystem and also promote financial inclusion by paving the way for lenders to offer individuals and small and medium-sized enterprises (SMEs)with more opportunities to access credit.”

The fintech market in the UAE is expected to grow at a CAGR of 12% through 2027, with Covid-19 amplifying the uptake of e-payments and the growth of local fintech solutions. According to a recent report by Refinitiv, the pandemic has also had a substantial impact on risk and compliance functions in the MENA region, indicating the growing need for innovative technologies to protect the integrity of financial systems. spocto uses ML-based predictive and prescriptive analytics, including technographic, psychographic, demographic, and sociographic insights, to improve customer engagement and predict behaviours.

Backed by Yubi, one of the fastest growing fintech unicorns in the world, spocto was founded in 2017 and has since forged partnerships with over 21 financial institutions, including HDFC and ICICI Banks in India, as well as Emirates NBD, Mashreq and CBD in the UAE. Helping more than 30 institutions improve risk mitigation and digital collections, spocto has processed $95 billion volume processed to date, with 52 million customers and a 57% reduction in cost of collections and 18% improvement in efficiency for its partners.