Our purpose
Microfinance boasts a history—centuries-long and worldwide—of answering a fundamental demand. The concept of microfinance is not new. However, L-Pesa microfinance most certainly is. Traditional microfinance has limited reach, and solutions have been targeted towards poor farmers and small business owners— completely overlooking others in need that represents 42% of the world’s population.
For over a decade L-Pesa has been advancing over 600,000 people to financial inclusion through mobile payments, and now mobile wallets too. L-Pesa started its micro financing activities with mobile operators based on their ‘top up’ and ‘PrePaid’ abilities. By the time the mobile wallet was introduced L-Pesa was already an established brand in Africa and served hundreds of thousands of customers. Today, our machine-learning-based system enables the fastest track from request to a micro financing loan.
Mobile Technology
The rise of the mobile phone over the past two decades has been one of the most profound technological and market shifts in human history. A large majority of humankind now owns a mobile phone, and many own smartphones. Mobile financial services such as M-Pesa have become available in many countries and support both the banked as well as the unbanked population. Based on the market penetration of mobile phones (smartphones and feature phones), mobile money services such as M-Pesa, Tigo Pesa, and Paytm have grown very quickly and have enabled L-Pesa.
Alternative data for cross authentication and scoring
L-Pesa uses external private and governmental data sources to deepen its screening and validation process.
Automated Retention, Collection and Expansion Process
Our technology automates and optimizes the full customer lifecycle to maximize retention, minimize loss and never miss another lending opportunity with our customers from Africa.
Big Data for Outreach and Validation
L-pesa uses big data for targeting potential customers and quickly establishing their return scores.
Liquidity Management
Mobile money agents are the unsung heroes of the mobile money ecosystem. They occupy a critical function without which the strides made thus far would be impossible. Mobile money agents onboard customers & convert physical cash into digital cash, and vice-versa.
The challenge of liquidity
Individual agents often struggle to meet customer demands for withdrawals or deposits due to insufficient cash on hand and e-float liquidity. As such, they miss opportunities to earn commissions and serve their customers as the mobile money agents’ real value lies in the ability for customers to withdraw or deposit cash quickly.
L-Pesa Solution
L-Pesa will assure a predictable cash flow for Mobile money agents with proven and predictable cash flows through an on-demand credit facility (float loan). This will further ensure financial resilience and financial health as partner agents will no longer say NO to a prospective client due to liquidity issues.
How value is created
By ensuring that that the mobile money agent never runs out of money, the ecosystem benefits this way:
Creating a world of opportunities.
Our mobile financial services stimulate human potential across emerging economies.
We trust our customers.
L-Pesa has put its trust in the potential of micro financing and in the people, it serves for over a decade. It is known as the first player in non-developed and less developed countries in Africa.
Loans for the life we desire.
All our services are fully smartphone-based. We avoid challenges imposed by traditional institutions, while providing customers worldwide with access to cash and the ability to use it wherever and whenever they choose. We use smartphone data to assess people’s credit. Without bureaucracy or paperwork, we developed a quick approval process that allows people to build or rebuild a solid credit history.
A fresh approach to approval.
We assess people’s credit based on smartphone data. With no paperwork or red tape, our approval process is quick and gives people an opportunity to build credit regardless of their banking history.
Building capital, crafting relationships.
By providing customers with seamless opportunities to build credit, we challenge the status quo and open a world of possibilities to experience life to the fullest. With an easy-to-use app to a friendly responsive support team, we do our best to deliver the finest user experience.
A quest with a wide-ranging impact
With the omnipresence of smartphones and the growing number of undeserved people around the world, the market is ready for innovation. We break fresh ground by using forefront technologies and user-friendly mobile services to expose new and better channels of financial growth and personal empowerment.
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