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Alex Franco
Chief Risk Officer and Chief Technology Officer, Jeitto
Jeitto primarily operates in Brazil. It's a payment and credit app that allows users to take out loans, recharge their phones, and pay bills, and it has more than 11 million customers
Jeitto is an important partner to assist consumers in their first experience with banking and financial services. The company expands access to credit to increase families' financial strength, foster trade, empower the population and promote more opportunities for access to a wider range of financial services.
Consumers apply and are given a credit limit – much like a credit card – and an invoice is then generated every month for purchases. Jeitto utilizes a mobile-first approach, offering a digital wallet and credit line accessible through a mobile app. This leverages the increasing adoption of mobile technology, particularly in developing economies, to reach individuals who may not have easy access to physical bank branches. While cash is still widely used in Brazil, the country is experiencing high smartphone penetration along with affordable data plans that have brought mobile payments within reach for millions.
Through Jeitto’s mobile app, consumers can pay bills and acquire products and services. The more consumers use the app, the more Jeitto learns and understands their credit behavior for potential credit increases and more purchasing power over time. The digital nature of the platform also contributes to lower operational costs to Jeitto, potentially translating to more affordable services for users.
Supernova Award Category:
The Problem:
Jeitto relies on Artificial Intelligence as the main technology for credit risk analysis.
The algorithms developed by the company analyze and predict the payment behavior of customers, using alternative data to approve credit limits and healthy loans as indicated by each customer profile.
To remain competitive, Jeitto needed greater agility in managing and adjusting its credit decisioning strategies given the growing default rates and to meet the needs of an increasing customer base of new-to-credit consumers. The challenge was to find a way to increase the credit granting capacity, and accessibility of credit solutions to this underserved population, while at the same time mitigating credit risk and fraud threats during application screening, In 2023 alone, fraud-related losses in the Brazilian banking sector reached $1.5 billion.
Jeitto also needed a platform that would decrease the data processing time which would provide the organization more flexibility in hyper-personalization of offers to existing customers.
The Solution:
Since 2022, Jeitto had been making a series of improvements to its platform, seeking to offer its customers an even better experience.
They sought to increase the credit granting capacity and control of risk factors in Jeitto's operations, improve the ability to more nimbly manage and adjust credit strategies, while supporting more personalized consumer credit decisions, and faster and more simplified integrations.
The company chose Provenir's AI Decisioning Platform to improve the efficiency of its credit journey and support its data-driven decision management in its credit granting, analysis and reanalysis processes.
The Results:
The adoption of Provenir’s scalable, cloud-native solution allowed the integration of several data sources from the financing company, accelerating the decision flow and significantly reducing the time of the credit assessment journey.
With its reinvigorated credit decisioning platform, Jeitto has realized faster data processing times which increased the flexibility of offers. This enabled the implementation of A-B tests and new rules with significant gains in agility and efficiency, reducing what used to take weeks into minutes. In addition, the ability to monitor and control actions allowed the results of new offers to be monitored in real time.
Improvement in the control of risk factors and fraud prevention has allowed for a more agile and efficient flow, for improved hyper-personalization strategies via more granular decisioning capacity.
Jeitto is now able to make smarter decisions in layers, making it possible to save on data queries and resources and reduce the unit costs of accessing and analyzing information.
More effective use of IT resources is also among the benefits. Previously, it was necessary to involve the Jeitto technology team to change decision flows, which included planning the software engineering team's time, developing the project, and then testing it. Now, these processes have become much simpler, which gives the team the freedom to reallocate technology resources to other projects.
Metrics:
The deployment has enabled Jeitto to grow its customer base and its book of business while safeguarding the company from risk. Jeitto’s customer base has grown from 4.5 million to 11 million customers while recording a 10% increase in its credit approval rate.
Improved risk decisioning has resulted in a 20% reduction in defaults on the Jeitto Loan, with an 8% increase in the average loan amount.
The company has reduced its credit assessment cycle time from nearly 1.5 minutes per application to just 30 seconds.
Simplified management has reduced the need for the technology team to be involved in changing decision flows, enabling the company to direct its valuable tech resources elsewhere.
The Technology:
Jeitto adopted Provenir’s AI Decisioning Platform to power decisioning innovation across the full customer lifecycle, driving improvements in customer experience, best-in-class fraud prevention, access to financial services and business agility.
The platform also connects fraud scores, identity checks and device validation, integrating multiple layers of fraud detection into decisioning workflows to mitigate threats at application screening, including synthetic fraud, impersonation and mule indicators. This eliminates siloed environments between credit and fraud risk teams, to ensure holistic, end-to-end decisioning with a complete view of customers across the entire lifecycle.
Disruptive Factor:
Access to credit is a key component of financial inclusion, enabling individuals to manage their finances, invest in their businesses, and improve their economic well-being.
Studies have shown that credit invisibility remains a problem for low-income individuals. The implementation of innovative solutions can result in a more inclusive financial ecosystem which provides opportunities to previously marginalized communities.
Jeitto focuses on providing financial services to individuals who may be excluded from traditional banking systems, often due to lack of credit history or low income.
While every for-profit company exists to create revenue, Jeitto is succeeding in boosting its customer base and revenues, while expanding its ability to provide credit and therefore opportunity to improve that the lives of millions of Brazilians. Brazil is an emerging market, achieving significant progress in modernizing payments and increasing financial inclusion and Jeitto is proud to play a role in delivering a credit payment tool to the underbanked community.
Shining Moment:
As a result of the efficiencies gained via the implementation of the Provenir’s AI Decisioning Platform, Jeitto was able to process more than nine million credit transactions over a 12-month period with approximately R$2.7 billion (US$479 million) in credit granted to customers.
From a business standpoint, deploying Provenir’s AI Decisioning Platform enabled Jeitto to free up resources to focus on strategic business initiatives. In just 12 months after implementation, Jeitto was able to make a full return on investment in the Provenir solution.
About Jeitto
Jeitto is a digital credit and services platform aimed at people who do a lot with little, granting financial resources in an uncomplicated, fast and secure manner to more than 11 million customers. The business model is supported by innovative technologies, artificial intelligence and algorithms that allow us to get to know our customers in depth and offer credit with controlled risk.
Jeitto is headquartered in São Paulo, Brazil, and was founded in 2014.
