This blog is authored by Ashley Lewis, Investment Officer, West Africa and South Africa, Accion Venture Lab with support from Tunde Kehinde, co-founder of Accion Venture Lab portfolio company Lidya.
This case study explores one company’s experience developing psychometric tests as an alternative method for credit scoring and a microfinance institution's experience implementing it.
This blog was co-authored by Jessica Osborn and Annabel Schiff, both Senior Manager, Partners for the FiDA Partnership
In May, the FiDA Partnership took 26 leaders from Africa’s digital finance industry to China to learn about their unprecedented FinTech boom. The week was immersive and intense, designed to allow participants to escape the boardroom and experience Chinese digital life firsthand on the streets of Beijing, in the mom-and-pop stores of Hangzhou, and the on factory floors of Guangdong. In this blog, we reflect on the key lessons.
Richard is a smallholder maize farmer in Western Kenya. He used to borrow money from his family or friends to buy essential inputs to grow maize—seed, fertilizer, and equipment—because he couldn’t access a formal loan from a bank. Most banks consider him a high risk client because of his low-income and lack of credit history. Recently though, Richard obtained a $50 loan for his farming business. By processing and analyzing satellite imagery on his farmland and cropping cycle, in combination with other alternative data, a lending organization was able to assess his creditworthiness.
Two agriculture FinTechs integrated satellite imagery into their business models and product offerings, illustrating the promise and limitations of big data in financial services.
This guest blog was jointly authored by Marissa Dean (FiDA) and Jake Kendall. Jake Kendall is the Director of the Digital Financial Services Lab (DFS Lab), an early-stage accelerator delivering innovative fintech solutions to the developing world.
Every minute of every day millions of users in Africa create digital data. This new data is creating opportunities for alternative “big data” to catalyze an expansion of financial services to low-income and hard to reach populations. FiDA’s Snapshot 9, “Best Practices in Big Data Analytics” and FiDA’s Focus Note, “Can Big Data Shape Financial
We share how FinTechs, telcos, and banks in East Africa are leveraging their extensive datasets and what the marketplace for this information looks like.