Through a series of new initiatives, Bboxx, a next-generation utility, is promoting greater financial inclusion in Africa
One of these is a cash loan and affordable financial services pilot aimed at transforming lives in Kenya. The pilot has secured access to finance for customers who would otherwise struggle to obtain it elsewhere and these cash loans will be used to support people, from improving financial capacities to invest in businesses like farming to paying school fees, medical emergencies, among other uses.
Using its platform (Bboxx Pulse) and its credit scoring algorithm capabilities to identify customers that may require a loan, Bboxx acts as the platform between the customer and the lender. Since the launch of the pilot, Bboxx has recorded a repayment rate of 80% and a low NPL (Non-Performing Loans) at 2%.
Bboxx’s customers are often building digital credit histories for the first time through paying for their solar energy Pay-As-You-Go via mobile money. Despite being excluded from mainstream financial services, Bboxx’s data indicates that these customers are highly reliable.
Bboxx CEO and co-founder, Mansoor Hamayun, commented, “We believe that technology is the key to unlocking inclusive and sustainable development in Africa. The launch of our latest cash loans pilot in Kenya is part of our wider strategy to continually innovate and to promote financial inclusion throughoutsSub-Saharan Africa. There is a significant untapped market opportunity here to enable people who have been previously unfairly cut off from finance to reach their full potential.
“Through leveraging our scalable technology platform and decentralised distribution network, we have a growing pipeline of opportunities where we can significantly help customers across a variety of sectors and services. We look forward to keeping up momentum as we accelerate our pilot launches throughout 2022 and beyond, working with a range of partners to put this vision into action.”
The launch closely follows Bboxx’s recent signing of the first ever Memorandum of Understanding to sell smartphones in Togo, in partnership with the Togolese Government. The MoU will improve digital inclusion and the delivery of digital public services, with the smartphones made available to the public via more affordable financing options.
Bboxx is looking to roll pilots out further in 2022 in Kenya and other markets, working with financial institutions, fintechs and traditional banks.
