Cooperative Bank of Oromia (Coopbank) and Kifiya Financial Technology (Kifiya), today announced a new partnership and launched a digital lending platform named Michu.
Coopbank Michu, Ethiopia’s first uncollateralized digital lending platform is powered by Kifiya’s Qena, AI driven digital lending solution.
The partnership will allow Coopbank to tap Kifiya’s digital lending technology. Likewise, it will give Kifiya to leverage Cooperative Bank of Oromia distribution and financial capacity. As a result, the two companies will offer lending solutions targeting Micro, Small and Medium businesses (MSMEs) that provide access to credit through groundbreaking and cutting-edge credit scoring systems.
Part of the reason why financial institutions put high requirements is because of a lack of credible credit rating. Michu’s ease of access enables users to apply for loans and receive a decision based on credit scoring logic. The loan application process from eligibility and verification to analysis, scoring and loan disbursement gets completed within a few minutes.
“We are excited to Join hands with Kifiya as we expand our digital financial offerings and deliver support the financing needs of micro and small businesses that are often neglected but represent a significant part of the economy.”, says Deribie Asfaw, President of Cooperative Bank of Oromia.
“Today’s partnership with Coopbank marks an exciting era for the Ethiopian Digital Economy as Kifiya’s Qena technology heralds an uncollateralized digital lending in the country. With the help of our AI powered credit scoring digital lending platform, we hope to unlock the power of MSMEs in Ethiopia”, says Munir Duri, CEO of Kifiya Financial Technologies PLC.
Michu will have offerings for micro, small and medium Businesses both in the form of loan and overdraft facility. The Microloans are aimed towards working capital needs of roadside traders and micro businesses with a maximum loan amount of 30,000 ETB and a repayment period of 1-4 months.
Whereas, the MSME loans targets traders at small and medium level with a maximum loan amount of 150,000 ETB and repayment period of up to one year. Moreover, the loans intended to cover the working capital of the MSMEs. Also Michu has another product targeted for employee of various organ called Consumer Loan.
The non-collateral digital lending platform is believed to be the new desired loan service that is innovative and makes the loan service process swift, non-collateral, easy to access at anytime and anywhere, a platform that uses data to determine credit worthiness as well as a flexible payment method. Michu Digital Lending Application is launching this month and is expected to increase Coopbank borrowers by 30% during pilot period.
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