On 16th November, Pezesha participated in the Agents of Impact call- The disruption in small business financing in emerging markets. If you missed the event, here is the video of the entire session for you to watch and learn from all the experts who spoke and shared informative insights based on their diverse practical businesses and industry experiences in Enterprise software, Crowdfunding, Fintech and Crypto.
The panelists included The People’s Fund’s CEO, Luyanda Jafta, Pezesha’s CEO, Hilda Moraa, Daniel Kimotho from Celo and Lendable’s CEO, Daniel Goldfarb, in conversation with ImpactAlpha’s Jessica Pothering and David Bank.
Our CEO, Hilda Moraa, echoed the below key takeaways on the approach Pezesha is taking in disrupting small business financing in Africa:
1.Origination of quality SMEs through our embedded finance approach
Pezesha has continued to champion embedded finance in tech enabled value chains through partnerships with the likes of Twiga Foods, Jumia, Marketforce, Popote Payments, iPay, Zumi among others. Through a single API integration we are able to seamlessly integrate our lending infrastructure in existing workflows and offer real time productive credit to institutions and their merchants at the point of need. Additionally, this approach has boosted efficiency in debt collection spearheaded by a wallet that is parked between our partners thereby facilitating automatic debits at the point of merchant repayments.
2. Our robust alternative credit scoring
We have built APIs and data driven models through our credit scoring technology, Patascore that allow us to assess the holistic credit risk of a merchant realtime by leveraging on both conventional and unconventional wider data sets through the integration with our partners point of sale data sources . To further enhance this data, we are empowering small businesses with digital tools to develop their credit history and overtime build a positive credit score that gets them to unlock higher credit limits.
3. Access to Low cost of capital through leveraging the blockchain technology
We have built a strong lending infrastructure in the last 4 years, that makes it straightforward to layer innovative approaches for us to reduce cost of funds and at the same time solve for the future. By adding the blockchain layer onto our infrastructure through partnerships with Celo and Cardano, we are now able to access additional liquidity pools to scale our offerings in a decentralized manner.
From The Agents of Impact call 34 and listening to all panelists talk about how their innovations are solving for small business financing in Africa, it was discernible that the future is here, and a lot still needs to be done to accelerate financial inclusion for underserved businesses in Africa. This is going to be a collaborative effort more than ever to drive disruption and sustainability at the same time.