Orange Money Group has partnered with South African fintech startup JUMO to launch numerous microcredit solutions in Botswana and other markets, including Burkina Faso and Mali.
Through the partnership, Orange Money aims to create a new microfinance marketplace for the unbanked in emerging markets, whereby customers will be eligible to securely request credit through their mobile devices, without needing a bank account or collateral.
"The collaboration with JUMO leverages their data analytics and artificial intelligence capabilities refined over 10 years to optimize credit allocation, reduce the cost of risk for lending to < 4% and grow sustainable portfolios," Orange Money Group said.
Additionally, JUMO's AI-driven technology for banks and payments ecosystems will provide Orange Money Group the opportunity to introduce real-time app-based and USSD lending to their African customers.
Here is how the service will work:
- Users access the service via their Orange Money Group wallet
- They request an amount of credit
- JUMO's AI technology evaluates eligibility based on transactional data
- If validated, the amount is immediately credited to the user's wallet.
- Repayment is made automatically according to agreed terms.