b2b2c | credit | united states
4Told reduces administrative costs and default risks for community banks, cooperatives, microfinance institutions and others by inserting artificial intelligence in the lending value chain. This is enabled by Hola Prestamo’s mobile portal, the retail counterpart of 4Told, that captures and crunches data from the phones of borrowers to corroborate identity, adjudicate credit risk, map possible ‘fractional’ guarantors through social media networks and inform refinancing options in the case of teetering default. 4Told links the lenders to the portal who can now reach a more diversified market; 86 percent of its institutional partners’ loans are originated digitally, the majority of which are processed in less than three minutes. To date, 6,500 end-customers in Colombia have received funding through 4Told’s clientele. The founder is a serial entrepreneur, advisor of technology companies and early stage angel investor; previously, he served as the Chief Executive Officer at both DaVincian Technologies and Atlantis Technologies.
b2c | credit | kenya
Apollo Agriculture uses machine learning, remote imaging via satellite, and mobile money to provide proven agricultural tools and financing to African farmers in a low-cost and highly-scalable way. Apollo’s innovation is twofold: first, they build credit profiles for unbanked smallholder farmers using machine learning models that process large volumes of customer data, including satellite data of customer fields. Second, they have built automated, digital processes for each step in the customer lifecycle, from customer acquisition, to training, to collecting repayment. Approved customers receive a mobile voucher to their feature phones, which they redeem at their nearby agro-dealer for a customized bundle of inputs on credit. These loans come bundled with insurance and advice, delivered digitally throughout the growing season. Apollo’s approach reduces the cost and complexity of lending to small-scale farmers, and allowed Apollo to grow their customer base 5x in 2018. Apollo’s leadership team brings together expertise in technology, data science, and ag-operations from The Climate Corporation, Uber, the One Acre Fund, and ACRE Africa.
b2b2c | credit | indonesia
AwanTunai provides supply chain financing services to micro-retailers in Indonesia, through merchant working capital and point-of-sale consumer financing. The three co-founders bring together a diverse set of experience, having held senior positions at GO-JEK, Kartuku, and Morgan Stanley. AwanTunai’s product enables micro-retailers to access invoice- and purchase-financing, all the way up the supply chain to principal suppliers or manufacturers. Its target customers are the 50 million small- and medium-sized enterprises (SMEs) in Indonesia that have limited access to banking services. Through AwanTunai’s offline model, which leverages technologies like artificial intelligence, geo-location tracking and facial recognition, the solution reduces credit risk, lowers interest rates and contributes to more resilient, reactive supply chains. To date, AwanTunai has approved 350,000 loan applications from 30,000 borrowers.
b2b | credit | united kingdom
Globally, there is USD $4.5 trillion in unmet demand for SME credit within the formal credit market. As a result, SMEs are often forced to tap the informal credit markets, a much more costly option. CreditEnable is addressing this problem through a digital marketplace for credit. The founders bring a mixture of experience ranging from having managed multi-billion dollar debt and equity portfolios, run first-mover impact investment portfolios, and built complex credit and risk technology platforms for global financial services institutions. Through CreditEnable’s cloud-based platform, SME lenders can improve speed, efficiency, and portfolio decision-making while also better managing risk. SMEs also benefit from improved visibility of credit requirements and better, faster access to affordable credit. CreditEnable has commercial contracts in place with lenders that manage a cumulative loan book of USD $60 billion.
b2b | credit | india
CreditVidya is an alternative data-based underwriting technology firm that assess 10,000 data points to better position traditional financial institutions in pricing thin-file or no-file borrowers. The two founders have previous experience with credit assessment; both with Experian’s expansion into India and in establishing India’s first credit bureau. Propelled by big data and artificial intelligence, CreditVidya has created several products that accurately determine repayment rates, quicken on-boarding, and protect against fraud. The result for financial institutions is an increase in approvals of up to 25 percent and a decrease in delinquencies of up to 33 percent, even when considering first-time credit users. CreditVidya’s AI and machine learning platform, Medhas, is built on 200TB of data and has assessed over 20 million assessments to date, across over 50 lending partners.
b2b2c | credit | india
Happy disburses working capital loans digitally to mom-and-pop stores and small-scale online retailers. The founding team draws upon experience pioneering new applications of technology in financial services, from Airtel Payments Banks to FINO Paytech, as well as advising financial inclusion policy for GSMA and the World Bank. The lending process leverages a wholly paper-less, human-less and application-less digital model, with loans as low as ten dollars and repayment terms as short as two days. This innovation is facilitated by the integration of Happy’s lending APIs and machine-learning algorithms into the platforms of India’s largest payment providers, including but not limited to point-of-sale networks, online payment gateways, and e-commerce platforms. Happy has disbursed over 33,000 loans, with over half of its clientele classified as first-time borrowers in the formal financial system.
b2b2c | credit | india
Jai Kisan provides low cost and timely financing for rural assets like agricultural and dairy equipment in India. Jai Kisan’s two founders have experience in private equity and management consulting, with stints at Abraaj, Alvarez & Marsal and PwC. Jai Kisan utilizes a hyper-local credit scoring model and an innovative approach to securitization that helps financial institutions lend to farmers at lower risk-adjusted rates. Of India’s smallholder farmers, only one in eight households can access formal credit, and of total credit flow to agriculture, only a meager three percent was dedicated to equipment financing. Through its unique network of rural channel partners including retailers, petrol pump operators, and buyers of agricultural produce, Jai Kisan is able to bridge the last mile distribution gap. To date, Jai Kisan has approved the financing of 100 loans earmarked for productive agricultural assets.
b2c | credit | indonesia
JULO tailors low-interest installment credit products to Indonesia’s unbanked, powered by its own machine learning algorithms to determine users’ creditworthiness instantly. Devised by in-house data scientists, JULO’s proprietary credit scoring is complemented by partnerships with third-party data providers that provide new data streams and refine underwriting techniques. Through this approach, JULO is able to reach Indonesia’s unbanked, most of whom are tech-savvy young people and micro-entrepreneurs currently locked out of the formal financial system. With low overhead costs thanks to a purely digital architecture, JULO offers competitive interest rates to no-file or thin-file borrowers at 4 percent per month. To date, JULO has approved over 100,000 loans.
b2b | credit | united states
Mosabi drives behavior change in entrepreneurs in India, Kenya, Mexico, Senegal and Sierra Leone through mobile e-learning, incentives and calls-to-action; data harvested through this process is then funneled to financial institutions as a new basis for credit scoring. The financial literacy curriculum is constructed by Mosabi’s local expertise – lessons are customized to users’ environments and available in local languages. Its learners are low-income entrepreneurs in cities, peri-urban areas, villages and slums, many of whom operate in the informal economy with no financial identity or footprint. Partner financial institutions can access the data, including KYC information, e-learning performance insights, questionnaire responses and Mosabi’s alternative credit score via open APIs – and then offer financial products to borrowers. To date, Mosabi has on-boarded 20,000 micro-entrepreneurs across five countries.
b2c | credit | mauritius
PEG Africa is a leader in financing and deploying solar to consumers and SMEs in West Africa, with operations in Ghana, Cote d'Ivoire and Senegal. The founders of PEG Africa have significant experience in combining financing and solar energy in West Africa, having been involved with two similar companies previously. PEG sells products as varied as solar home systems including lights, phone charging, radio and a torch, all the way to solar water irrigation systems for farmers. All of its solar products are integrated with mobile money pay-as-you-go functionality, and bundled with financing options. PEG's products are designed for underserved communities, often in rural and peri-urban areas, which lack reliable and affordable electricity. Additionally, once a good credit history has been established, PEG ensures that customers can graduate to additional services such as health insurance, larger solar home systems or productive use assets like solar generators. To date, 70,000 customers now have access to electricity.
b2b2c | credit | kenya
Pezesha addresses the limited coverage of credit bureaus in Kenya by offering ‘credit-decisioning-as-a-service’ for financial institutions through its marketplace platform. Through Patascore, its proprietary credit scoring model that integrates traditional and alternative data with machine learning algorithms, Pezesha calculates scores for thin-file or no-file borrowers. Of the users that seek out its SMS application and trusted third-party services in assessing their credit worthiness, 80 percent are women undertaking informal businesses (MSMEs). Pezesha embraces a hybrid approach, and includes financial literacy education within the SMS application to frame responsible credit as a wider wealth creation tool. Its competitive lending structure ensures transparent, affordable interest rates, while its positive and negative credit data has reduced portfolios’ non-performing loans by up to 20 percent. To date, Pezesha has connected 100,000+ low-income Kenyans to lenders.
b2c | credit | india
In India, over 900 million people have bank accounts but less than 40 million have access to short-term unsecured credit. Led by former senior managers from global investment banks and tech startups, SmartCoin specializes in micro-loans for underserved low and middle-income segments in India through a mobile-first product built on artificial intelligence and machine learning innovation. Its proprietary models digest billions of data points spanning transactional and behavioral attributes to go beyond traditional sources to better predict fraud and default risk. More than 1.5 million blue- and grey-collared workers and self-employed entrepreneurs have downloaded SmartCoin’s mobile application, which boasts approximately 150,000 monthly active users, to access digital, reliable, and affordable credit. SmartCoin was recently selected by Google for its India Launchpad Accelerator program.
b2b2c | credit | indonesia
TaniFund is a peer-to-peer lending platform that connects smallholder farmers in Indonesia to retail and institutional investors. The founding team has deep experience in Southeast Asia especially in the financial technology sector with leadership roles in Akulaku, Indonesia’s largest lending fintech, and Etobee, a last-mile delivery logistics company. TaniFund facilitates a credit marketplace and prices unsecured loans through data acquired by its sister company TaniHub, an e-commerce platform that allows smallholder farmers to sell their produce directly. By aggregating and analyzing historical sales and demand data, TaniFund selects farmers with both online reputational collateral and whose inventories align with seasonal buying trends. The annualized loan cost for the farmer is 17-20 percent compared to the 24-70 percent per annum common in traditional financing. To date, TaniFund has funded USD $10.1 million to associations representing 3,403 smallholder farmers.
Three Wheels United
b2c | credit | united states
Three Wheels United is disrupting lending to low-income and less-literate clients. Their holistic AI/data driven loan management system expands the scalability of micro-finance (MFI) across the Global South, helping to bridge the lending gap between MFIs and banks. Their technology takes a holistic approach to lending to low-income clients, maintaining the critical human elements required in this demographic, while using AI and data to drive smart decisions and reduce the high operational costs of a typical high-touch MFI model. So far, their clients have enabled the purchase of 2300 electric tuk-tuks in India maintaining default rates below 1%, much lower than the average default rates in this market. Not only do these drivers create an annual lending opportunity worth $1.5 billion in India alone, but these drivers double their income when they own their vehicle, and contribute to the reduction of pollution by choosing an electric vehicle.
b2b2c | credit | kenya
Tulaa provides smallholder farmers in Kenya with agricultural inputs on credit and brokers the sale of their crops at harvest time through a digital marketplace. The founder of Tulaa has deep experience in the sector; she led a microfinance institution in Tanzania, created the Connected Farmer initiative with Vodafone, and served as Chief Executive Officer at Esoko. Through a credit score that relies on alternative data such as satellite imagery and mobile money records, Tulaa has reduced the loan decision process to minutes. Its customers were previously invisible to financial lenders, with 71% of its borrowers reporting no access to input financing prior to Tulaa. Its role as a digital broker aims to shorten the supply chain and reduce post-harvest losses, which in 2017 amounted to 1.9 million tons of products with USD 1.5 billion. This year Tulaa expects to sell inputs on credit to 4,000 smallholder farmers in Kenya and broker produce sales for at least 2,000 farmers.