LONDON (ShareCast) - (Sharecast News) - Data intelligence company GB Group said on Thursday that it was leading the $7m (£5.35m) first close of a series A investment into CredoLab, a Singapore-based developer of bank-grade "digital scorecards".

The AIM-traded firm said that, in an all-share transaction, it would purchase a minority stake in CredoLab for $3m.

It was in accordance with its ongoing cash management strategy, the board said.

The board said CredoLab, established in 2016, develops artificial intelligence (AI)-driven bank-grade digital scorecards for businesses that needed to assess an applicant's risk profile, and make better credit decisions.

A closer collaboration with CredoLab would enhance BG Group's digital onboarding solution, it explained, and allow it to reach new fintech and neobank market segments.

In exchange for its minority stake in CredoLab, GB Group would issue 321,882 shares to CredoLab.

"GB Group's fraud and compliance solution allows financial institutions to onboard and transact with their customers quickly, safely, and securely," said chief executive officer Chris Clark.

"We have experienced first-hand CredoLab's capabilities from our ongoing commercial partnership.

"The company's AI-based proprietary technology will not only complement our existing offering but also provide critical behavioural risk reference data from good customers who are financially excluded."

At 0827 BST, shares in GB Group were up 1.5% at 742p.

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