Small businesses are critical in Emerging Markets but 70% have little or no access to finance. Nimbli is using technology to promote Financial Inclusion in East Africa, leveraging growing smartphone adoption and using Big Data & Machine Learning to support those forgotten by the financial system
An estimated four million people in Mozambique (East Africa) have a bank account today, just 27% of the country's ~15 million working age population. In a country where 63% of people live in poverty (earning less than $1.90 per day), SMEs and low income families are amongst the many receiving little or no access to financial services.
Nimbli is aiming to launch a new app in 1Q 2019 to tackle this issue in strategic partnership with a major African Bank. The company will provide front-end customer engagement to Small & Medium Enterprises (SMEs) in Mozambique, while the Bank will manage the SMEs' deposits and credit.
The app will allow users to access a bank account directly from their smartphone and will apply Big Data & Machine Learning to their data to provide them with analytics, cash flow & balance forecasting. We and the Bank believe the app could support more informed credit decision making and ultimately increase credit availability to new and existing customers.
We think Fintech has the potential to at least double the current number of banking customers in Mozambique so will launch a Pilot Programme in 1Q 2019 with the Bank to test demand. If the Pilot is successful, we believe there is a wider opportunity for the app to be used to increase credit availability in other African and Emerging Market countries.