According to Andree Simon, Co-CEO of FINCA Microfinance Holding Company, “This partnership gives FINCA more objective information to form a credit decision and more time to improve the quality of our relationship with our clients.”
The firms say they aim to use the data to establish credit scores for low-income clients who lack sufficient formal credit history to secure small loans to build businesses or support emerging personal needs. The data will minimize the risk, lower underwriting costs, increase the speed of loan decisions, expand the pool of eligible borrowers and ensure they get the guidance they need to borrow safely and successfully.
The firms are doing a pilot in Tanzania and aim to operate in six African countries where FINCA maintains subsidiaries by end of the year. The company’s mission is to reduce the cost of lending and borrowing to improve access to affordable capital in emerging markets.
With this mobile technology, FINCA’s microfinance network of 1.8 million people in 23 countries will have access to affordable financial services, including micro and small business loans, credit lines, savings, insurance, transactional services, and more using First Access’s credit scoring with mobile phone data to reduce risk.