Page 222 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Company Commercial Bank of Africa (CBA)
Overview In 2012, in partnership with Safaricom, CBA introduced M-Shawari (cbagroup. com/
m- shwari/ what- is- m- shwari). In Swahili, M-Shawari means to make something better
or smoother. Loan amounts are determined by savings balance (no minimum balance
is required), usage on Safaricom services (must be an M-Pesa user for 6 months and
an active user of Safaricom voice or data services), and M-Shawari loan repayment
history. M-Shawari loans cannot be serviced through CBA branches, only via mobile.

Defaulters lose their Safaricom phone number. CBA is considering integrating a
rewards program (Bonga) based on loan repayment behaviour.

Differentiator Incorporates savings (not required) into loan amount determination.

No loan application; eligibility and amount are determined through automated phone
call.

Loans build credit history.

Company Entrepreneur Finance Lab (EFL)

Overview EFL (eflglobal.com) provides credit scoring as a service using psychometric testing
that can be delivered online or offline. These tests gauge ethics, honesty, intelligence,
attitudes, and beliefs. EFL is investigating the use of mobile phone usage, social
network, and geolocation data.

EFL operates in 27 countries and has provided scoring for over 450,000 applications.

Differentiator Uses psychometric analysis to determine willingness to repay.

Company Faulu
Overview Launched in 2012 in partnership with Airtel, Faulu (faulukenya.com) offers 10-day
loans in 17 counties to customers with at least 6 months of mobile service and 2
months of mobile money transactions.
Default data is shared with the National Credit Reference Bureau.

Company Greenshoe Capital, Inc.
Overview Based in Kenya, Greenshoe Capital, Inc.’s Saida (getsaida.com) analyzes SMS digital
payments data, top-up data, and phone plan usage.

As of late 2015, Saida has given out more than 8,100 loans and is growing at 47 per
cent week-over-week. The company touts retention rates of 84 per cent and has a
default rate of 8.5 per cent on their 30 and 60-day loans.

Differentiator Analyzes the proportion of phone usage on data service, voice or text messaging.

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