Commitment to Action

Financial Inclusion for the Unbanked Through Mobile Technology

Commitment by

Channel IT

In 2015, Channel IT committed to provide sustainable microloans to 200 million people in Africa by 2018. It will also expand its loan options from only offering airtime micro-credits of between $0.25 and $4 to offering larger loans of $20 to $500. Responding to the lack of applicability of traditional credit scoring mechanisms, Channel IT utilizes telecom data to assess the credit worthiness of customers and rate them with a proxy credit score. In 2014, the company distributed $450 million in airtime micro-credits to a base of 100 million customers and achieved a bad-debt rate of only one percent. Channel IT will expand its reach through its relationships with mobile network operators that have access to 40% of the population of the continent of Africa. It will seed the platform with more than $10 million while also building a peer-to-peer lending system where investors have access to borrowers’ credit information and interest rates are determined by the individual’s credit score.

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Overview
Summary

Commitment

Financial Inclusion for the Unbanked Through Mobile Technology

Launched

2015

Est. Duration

3 years

Estimated Total Value

$35,000,000

Region

Africa

Countries

ANGOLA, BENIN, BURKINA FASO, CAMEROON, CHAD, COTE D'IVOIRE, Democratic Republic of the Congo, ETHIOPIA, GHANA, GUINEA

Commitment by

Channel IT