'Saida' is a new app that helps young entrepreneurs establish a credit score in order to get approved for a short-term loan. While mobile phones are becoming more prevalent in many parts of the world, the vast majority of people still lack access to the credit cards that are needed to help them build a credit score. This app helps consumers build a credit score that is based entirely on their phone activity.
Saida helps consumers establish a credit score by tracking their mobile activity. The app uses a person's prepaid phone plan to see what proportion of the plan is spent on data, calls and texts. This information is then used to give the user a basic credit score, which can be used to help them get approved for a short-term loan. The app is designed to help young entrepreneurs in Kenya access the money they need to kick-start their business ventures.
Saida provides a new way for small business owners to access lending services without the need to have a credit card.
Micro-Lending Apps
This App Helps People Establish a Credit Score Based on Their Mobile Activity
Trend Themes
1. Mobile-based Credit Scores - There is an opportunity for companies to create more apps using mobile activity to build credit scores for those without access to traditional financial services.
2. Alternative Lending Models - This micro-lending model highlights the potential for alternative lending platforms to emerge that cater to underserved segments of the population.
3. Data-driven Credit Scoring - As data becomes more ubiquitous, we can expect to see more financial services leveraging non-traditional data sources to build credit scores for individuals.
Industry Implications
1. Fintech - Fintech companies can leverage mobile technology to create innovative lending platforms that provide access to credit for underserved populations.
2. Mobile Network Operators - Mobile network operators can partner with fintech companies to offer financial services to their customers without the need for traditional banking infrastructure.
3. Emerging Markets - Companies focusing on emerging markets can capitalize on the need for alternative lending solutions for entrepreneurs and small business owners who lack access to traditional financial services.