To promote financial inclusion in Africa, SC Ventures, the innovation, fintech investment, and ventures arm of Standard Chartered, has signed an MOU with Yabx, a Dutch fintech company that intends to make it easier for MSMe in emerging economies to access financial services.
Even though there are over 700 million mobile wallets and over 450 million bank accounts in Africa, access to formal credit is still severely limited because of a lackluster credit infrastructure and the conventional banks’ delayed evolution of their risk appetite.
The collaboration between SC Ventures and Yabx will take use of the banking industry’s recent growth in digitization following the COVID-19 outbreak to develop special, African-specific solutions that will improve credit access for the continent’s underbanked population.
The combined strategy between SC Ventures and Yabx will broaden inclusion across underprivileged groups in Africa where it is most needed. It does this by utilizing an unique data-driven scoring and analytics engine that has been designed with significant knowledge from African markets. Customers would be given loans for particular goals like education and skill development.