Pocket Money has come up with a marketplace that offers a multi-layered solution that ensures that the borrower is introduced to various potential lenders.
KAMPALA, Uganda, May 13, 2019 – Over the past few years, there has been a proliferation of new fintech models, offering alternative financial solutions to the conventional set-ups, more so in the lending sub-sector in Africa. New horizons in the African financial industry are evident with new trends gaining strong traction especially through peer-to-peer (P2P) models-allowing such distinct niches as consumers, SMEs and other borrowers who were hitherto ignored by conventional lenders to access loans more efficiently and expeditiously via digital lending technology.
Be that as it may, financial pundits lament that credit extension in Africa lags behind other regions, noting that while the ratio of credit is only 18 percent in Sub-Saharan Africa, comparable figures in South Asia and Latin America are 37 percent and 47 percent respectively.
However, hope is in the air though, with Pocket Money, a digital lending marketplace, determined to transform the financial fortunes of borrowers in Africa by pioneering a ‘cyclic’ lending system that will provide a breath of fresh air even to potential borrowers who had previously been ‘rejected’ by lenders within Pocket Money’s ecosystem.
To address this challenge, Pocket Money has come up with a marketplace that offers a multi-layered solution that ensures that the borrower is introduced to various potential lenders, offering more alternatives that provide the likelihood of a borrower to finally access the loan in the long run.
For instance, more often than not, a borrower may approach a lender for a microloan in cash, but the application, for one reason or another, is rejected, leaving the borrower with very few, or no options at all. The dilemma for the borrower becomes a nightmare especially if he’s a traveler in some regions of the world where access to an online lender is either limited or non-existent-a dire situation that means the end of the road for the borrower.
It is such a predicament that Pocket Money, which is now committed to officially stamp its footprint in Africa, is set to inhibit by developing a global marketplace in which the rejected loan applications are circulated and resubmitted to licensed lenders all over the world with a view to providing them with another chance of accessing the loan. Pocket Money’s ultimate aim is to make this technology available to everyone so that the echo of financial inclusion can resonate in every corner of the world, irrespective of geographic location. By doing so, it has created a marketplace for financial services that brings together financial service providers, customers, and investors into a single global stage.
According to CEO and Co-Founder of Pocket Money, Stefano Virgili, the new marketplace seeks to expand Africa’s financial ecosystem to have a real impact on financial inclusion on the continent.
“Through this unique system that links an array of potential lenders to borrowers, we are able to create a larger pool of clients who will in essence provide revenue sharing with lending businesses located across the world while the borrowers can connect with lenders around the world, breaking the barriers that prevented them from borrowing money from a competitive global marketplace”, says Stefano.
“Conversely”, adds, Stefano, “tech partners can connect to Pocket Money network and develop apps to integrate with fintech solutions while investors can participate in the Pocket Money fundraising as well as the backing of new loans”.
Stefano laments the challenges faced by borrowers in Africa including not having a credit history, therefore, rendering credit scoring almost impossible, loan application rejection partly due to the above or other criteria deficiencies, interests on loans that are prohibitively high, not having enough funds to repay loans, and not being able to borrow from someone abroad, while some lenders face the challenge of running out of cash to service borrowers.
“Pocket Money, therefore, offers solutions to these challenges by innovatively using technology, expanding the financial marketplace and strategic social engagement that reduces the risk of default. These solutions include creating a unique socially enabled Pocket Money Credit Profile that addresses the challenges of credit scoring which is a common criterion used to access borrowers’ repayment risk”, he adds.
Through the new technology, a borrower’s application is circulated through other lenders globally to increase the likelihood of getting a loan. The system ensures that the lender who wins the bid is the one offering the lowest interest, enabling borrowers to have access to competitive repayment rates.
The system, a new fintech technological phenomenon in Africa, is destined to be sweet music to borrowers in Africa for it will significantly attract and increase more aspiring borrowers, thus fostering financial inclusion on the continent.
Suffice it to say, Pocket Money is the easiest way to gain access to credit when rejected by a lender. However, lenders may also face the challenges that include risky borrowers’ profile which might expose financial service providers to uncertainty, unavailability of borrowers in certain markets and the risk posed by manual processes which might have an impact on time and quality of records.
These risks are nevertheless, mitigated by Pocket Money Credit Profile that provides hundreds of data points that give lenders a better risk analysis assessment. Through the marketplace too, lenders can bid on rejected applications anywhere in the world, ensuring there is no scarcity of potential borrowers.
Stefano explains that the Pocket Money ecosystem encompasses a strategic social engagement platform that enables participation with friends and families in surveys and micro tasks to earn loan credits that are particularly beneficial to cooperatives and groups like savings and credit societies as well as informal saving groups at places of work or among friends.
“Further, forex exchange rates in real-time used in this marketplace also facilitate a multi-currency wallet that allows sending money around the world in local currencies. This tool does not only service borrowers and lenders but also serves remittance payments in emerging economies”, says Stefano “in fact, it protects lenders by settling all the B2B transactions in USD.”
He adds that the marketplace is a multi-faceted platform that incorporates simple and intuitive lender dashboard developed by Pocket Money allowing for efficiency in saving processing time and ease of access to borrowers wherever they may be.
The marketplace also supports licensed lenders to ensure their sustainability by supporting some of their cash flow and liquidity challenges through loans made directly to borrowers, provision of third-party lenders and borrowers who use Pocket Money tools and borrowing money at low-interest rates and lending out at slightly higher rates for the service provided.
With Pocket Money, borrowers with high default risks are supported in paying back loans through social repay.
Depending on the country’s availability, Pocket Money users, whether they have borrowed or not, might receive micro-tasks, such as verifying that a billboard contains the poster that the advertiser has paid for, answering a survey, etc.
Such micro-tasks are paid for by brands through existing third-party apps. Each app might reward in a different digital currency, like Smiles for example. The currency can then be used in Pocket Money wallet to purchase USD vouchers that can be gifted to borrowers (i.e. family and friends) or purchased to offset your own loan.
All in All, Pocket Money not only benefits lenders, borrowers and investors; it also helps borrowers to pay back their loans through the use of innovative interoperability payment systems.
The marketplace uses today’s technology in a way that allows individual components of the financial services ecosystem to be open and connected to each other in such a way that was not possible before, creating solutions that are greater than the sum of the individual parts.
Partner lenders such as banks, financial services providers, telecommunication companies and governments who can act as underwriters for loan services will have an opportunity to operate in this marketplace with the advantage of having a larger market of customers locally, regionally and internationally.
Currently domiciled in Singapore, Pocket Money is now set on establishing its footprints in Africa, trailblazing what is destined to be a unique credit-lending marketplace that will undoubtedly transform the continent’s lending sub-sector.
Future Females – Own Your Income Summit
“The more you learn, the more you earn.” Future Females is facilitating the growth of entrepreneurs globally, by hosting a FREE virtual 2-day ‘Own Your Income’ summit on Tuesday 21st and Wednesday 22nd April, with experts from all around the world sharing their knowledge and expertise about how to build your business to be in control of your income.
In a study conducted within the Future Females community at the end of last year, it was found that 68% of entrepreneurs have designed their business as a means to help them achieve financial freedom. Being in control of your income and financial wellness is a key component of empowerment, and empowerment plays a very critical role in the development of society. As Kofi Annan says, “there is no better tool for development than the empowerment of women”. The Future Females mission is to empower and facilitate the entrepreneurs in their community, by increasing the number and success of female entrepreneurs, globally.
The world is in a period of change, and it is times such as this that demonstrate the importance of adaptability, flexibility, and creativity when building a business. Future Females have created the upcoming summit #OwnYourIncome, as an opportunity for thousands of entrepreneurs to learn from the best. There will be 10 global experts lined up to share their tips and insights about how to pivot, stay relevant, adapt where necessary, recover from setbacks, and, most importantly, design your business to give you control over your own income, allowing you to achieve financial freedom, even in times of crisis.
The summit will run over the course of 2 days, Tuesday 21st April and Wednesday 22nd. During these two days interviews, masterclasses, teaching sessions, live Q&A’s and bonus content from our experts will be released online and into the private Facebook Group. The summit is free to attend and all content will be accessed virtually.
The summit aims to offer
– Access to some of the leading experts (nationally and) globally
– Free resources to African as well as international entrepreneurs alike
– Half of our speakers come from an African context (with businesses mainly in South Africa)
– The summit is easily accessible over your phone, we will share video and audio files to comply WITH any wifi data set up
– The representation of female experts and speakers is being facilitated
– The summit acts as a big forum for entrepreneurs to connect and share ideas and solutions, the discussion, live interviews and Q&As will give attendees the chance to actively participate.
- Lelemba Phiri, Principal and Gender-lens Angel Investor at Africa Trust Group.
- Jonathan Kalan, co-founder & CEO of Unsettled.
- Sam Beckbessinger, author of How To Manage Your Money Like A F*cking Grownup.
- Adam Duxbury, co-founder of Granadilla and Chief of Staff at Yoco.
- Eitan Stern, Director and Lawyer at Legalese.
- Kerstin Bock, co-founder & CEO of Openers, organiser Tech Open Air.
- Jos Dirkx, TEDx speaker & co-founder Beenova AI.
- Sara Kolata, Architect, co-founder & Creative Director of KRAFT Digital.
- David Noel, co-founder & podcast co-host of Role Models podcast.
- Lauren Dallas, co-founder & CEO of Future Females Plus more to be released over the next week.
A community of entrepreneurs, connected together, learning about how they can survive, adapt and be ready for the future. This is the start of future-proofing your business.
“For us, our goal is to provide thousands of women around the world with the opportunity to learn from those who have gone before. We have built strong, collaborative partnerships with each of our experts, and we know just how beneficial their teachings and insights will be for our community. We are so excited to host this summit, and we are choosing to focus on the positives we can draw out of this current global crisis, rather than let the negatives hold us back. This is our chance, as entrepreneurs, to shape the future – and we can’t wait for what’s to come.” – Lauren Dallas, co-founder of Future Females.
Secure your free seat for the #OwnYourIncome
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Apply: The African Impact Initiative Challenge
Speakers at the last African Impact conference at University of Toronto (January 2020). Right to left: Wisdom Tettey (Vice President, University of Toronto), Efosa Obano (Founder, AII), OlutoyinOyelade (Founder, CASA foundation), Sandra Chuma (Founder, Ndini Media), EhiAdemabo (Mindset Surgeon), ObidimmaEzezika (Assistant prof, University of Toronto).
The African Impact Initiative is a non-profit organization with a mission of developing the African community through its youth. Formed and supported at the University of Toronto since 2016, their projects have helped to provide African youth in Canada with better career opportunities and core skills. They also provide a platform for them to learn from experienced professionals, through their workshops and conferences.
As the organization grew, they began to tackle challenges back home as well through community development projects. Their first project in Southern Nigeria was focused on improving healthcare outcomes for the IkotEko Ebon rural community. In partnership with Cottage Hospital and the Akwa Ibom government, they were able to increase the number of people in that village who received quality care by revamping their community hospital with equipment to address their pressing health issues. They also held a campaign, to educate the community members on what was now available in their local dialect.
While successful, this project revealed some of the challenges organizations face when trying to bring in solutions from outside. Sustainability was proving hard, due to travel costs and communication gaps. It was clear that they couldn’t replicate this model in different African communities as easily as they had thought. This was what motivated their team to come up with the African Impact Challenge.
The goal of the African Impact Challenge is to enable sustainable development locally across the continent, by investing in youth and empowering them to solve identified problems through technology driven impact entrepreneurship. They are essentially trying to empower African youth to tackle their own challenges locally with technology. Guided by The Prosperity Paradox, it will be run in different African countries over the next 5 years. The target is to successfully kick-start 10 innovations aligned with the selection criteria by 2025. African Impact Initiative will be doing this by providing capital, resources and mentorship necessary to begin from scratch with a $100,000 CAD fund.
The first version is taking place in Ghana, and they have partnered with Ashesi University, Ghana Technology University & University of Development Studies to rollout the applications. It is open to students in other universities as well. They have also partnered with BaseCamp Initiative to provide the co-creation space. Selected teams will participate in a paid summer incubator, which will bring their ideas to life and make them market ready; with funding of up to 20000 GHS available per team.
All Ghanaian youth are welcome to apply! This year’s challenge application is open until April 10th at 11:59PM GMT. Please check out the criteria and apply here: https://www.africanimpact.ca/the-african-impact-challenge
Pictures from the visit to Ghana in December 2019
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10 Inspiring Women Share Their Thoughts on IWD 2020 Each for Equal
International Women’s Day (IWD) is an annual event which holds every March 8 to celebrate women’s achievements, spread the message of women empowerment and gender equality across the world. The theme for International Women’s Women Day 2020 is, I am Generation Equality: Realizing Women’s Rights. Below, 10 inspiring African women in business and social ecosystems shared their thoughts with Alaba Ayinuola on the progress made towards achieving gender equality.
Elisabeth Moreno, Vice President and Managing Director at HP: All Humans beings are born free and equal in dignity and rights …But some Humans are more equal than others. That’s a fact. And an issue for most of the reasonable people in this planet. Whether you’re born in the North or the South, in an Urban or Rural area, Black or White, Girl or Boy, you will not have access to the same equality. Read More
Oyinda Bishi – Marketing Professional and D&I advocate: As a strong advocate for women in any sphere of life, I grew up in Nigeria in a family of many brothers – I was very lucky to have a father who was an unashamed feminist that believed people generally should be free to chart their course in life and women especially should be able to decide and undecide what their life should look like and that has fueled my passion and self-belief to no end. Now as a mother of 3 daughters – that grit is amplified a million-fold especially in the world today. Read More
Cynthia Musafili Wright, A speaker, Author, Entrepreneur, Aged Care Clinical Consultant and Philanthropist: – Leading with inordinate authenticity as a substitute for the adoption of personalities basing on other’s expectations might crack more governance potentiality in women and, at the same time, hasten their influences within their respective organizations, according to the United Nations. If women are not authentic in society and at the same time are not recognized, appreciated, and respected,most would want to do what is required of them to perform and succeed in most departments. Read More
Oyetola Oduyemi, Executive Director at tengvoX Consulting: Each for equal to me means – Acceptance. Fairness. Partnership. Support. Giving opportunities along lines of competence, skills, interest, desire, ability. Not gender or race or tribe, or any divides irrelevant, or that should be irrelevant, to the pivotal task of nation-building that we have at hand. Read More
Bukola Bankole Partner, TNP: International Women’s Day is a day of reflection and celebration of everything we’ve achieved especially over the past century. This year’s theme #EachForEqual is about equality. There has been an uprising in recent times about the need for constructive inclusiveness of women in all aspects of human life. Read More
“The #EachForEqual movement is a powerful one in the fight against gender inequality. I admire the work of companies and organisations that have taken a stand against inequality, especially in the workplace. Furthermore, I believe that there is a lot more work that needs to be done in reshaping the minds of women. A woman can be the CEO of a large company and still feel as though her opinion is as undervalued as entry-level staff. She simply cannot be a powerful force to be reckoned with if she feels unworthy. I am passionate about being an agent of change in this department. I believe that there should be an investment in the personal development of these women together with high-quality leadership development training. Visit: Stha Mavundla
The #EachForEqual campaign is raising a new narrative on gender equality. No more movements filled with the voices of only female voices demanding equality. This is not a women only problem- this is a societal problem. More men are now seeing that limited opportunities for women don’t just hurt their wives, daughters and mothers but also directly limit the possibilities of our sons, fathers and husbands.Thus equality and inclusivity is not an option but a necessity.
Strong women do not have attitudes. They have standards and boundaries. Professional women are not trying to impress anyone. They are doing their jobs in a professional way. Self-confident women are not conceited. They have self-esteem as they believe in and acknowledge their own abilities. Women are unique because they were created that way. This post would never be complete without adding “and men” after “women“ as they are our partners in life. An equal world is an enabled world.
The International Women’s Day celebration this year theme says it all, equal opportunities especially for both male and female in the agribusiness value chain. Reduced marginalisation of women in agriculture ecosystem, and equal access to funding for female founders of agribusiness among others.
This year’s International Women’s Day Theme, Each for Equal, emphasizes yet on how important it is to protect the rights of women as stakeholders of societal, economic, and national growth.
As the theme rightly indicates, an equal world is an enabled world.Both parties, male and female, have the potency to make positive global and local change according to each one’s capability and purpose. We all have equalcollective power to change the narrative by challengingstereotypes, fighting bias, broadening perceptions, improving situations and celebrating women’s achievements.
I believe that even though we are celebrating women who have achieved in the areas of politics, business, health, sports, science and technology, entrepreneurship, and education, there is still more room for improvement. I am particularly excited about the inclusion of our young women in STEM projects. I yearn to see projects that will accelerate the each for equal movement for more women in politics, financial inclusion, and access to business opportunities.
Let’s all be #EachforEqual.
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