SUCCESS STORY

E-Commerce startup scales from 1,000 loans to over 40,000 loans within 6 months

High accuracy scorecards enabled scale in lending with 5 – 10% reduction in loss rates
Embedded Finance E-Commerce Platform providing inventory finance and working capital loans to MSMEs in Africa

Country: Nigeria

Company Size: 500 – 1,000 Employees

Type: E-Commerce, Marketplace, SME Lending

Products: Working Capital Loans; Inventory Finance

Results after 3 months

<1 week

to develop and deploy new credit models

8%

Increase in Approvals which reversed rejection rates

The Challenge

An E-commerce marketplace in Africa connecting 120,000 MSMEs on its platform to consumer goods suppliers had launched a pilot inventory financing product using simple business rules. However, they were struggling to scale. Every time they loosened the criteria, their loss rates increased.

The entire credit application process was manual and hampered by a lack of reliable Credit Bureau data, bank statements and financial statements, especially for women-owned MSMEs. Additionally, they were a Series A company and did not have a credit risk expert in-house

The Solution — creditX

  • Ensemble ML algorithms for higher predictive accuracy
  • Models developed using traditional demographic data, historical data and supply chain data
  • Seamless integration with customer’s Datawarehouse, LOS & LMS systems
  • Enabled real time processing of credit applications
  • Training conducted for CEO and core leadership team
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The Results

-10%

Reduction in gross credit losses

80 pts

High-performance credit models

40k+

Merchants Receive pre-approved credit facilities

<1s

Processing time per application

Unprecedented Scale

The high predictive accuracy of credit models generated by creditX resulted in our customer transitioning from lending to 1,000 MSMEs to over 40,000 MSMEs within 6 months, while seeing loss rates reducing by 10%. The growth has enabled them to scale to other markets within Africa.

Enabling Financial Inclusion with Ease

85% of their loans are taken up by Women-owned MSMEs, traditionally an underserved segment with regards to access to credit. Without any in-house credit modellers, the Core Leadership team underwent training and were developing & deploying credit models without any support from finbotsAI.

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“A game-changer”

finbots.ai’s solution, creditX, is a game changer in credit modelling that supports our Bank’s digital transformation journey.

– Ti Eng Hui, CEO, Baiduri Bank

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