In detail advantages are:
- awamo’s solution gives everyone access to microfinance.
- The availability of individual credit information can significantly lower interest rates.
- Availability of individual credit information protects borrowers from over-indebtedness.
- Borrowers can expand their businesses and hire more staff due to higher financial capabilities.
- awamo’s solution offers “out-of-the-box” credit and risk management completely mobile and digital and therefore much more efficient. Our software is very user friendly so that credit agents save much time and error rates drop significantly.
- Lenders are able to access individual credit information of borrowers (even about loans from other lenders) to effectively manage their business processes and portfolio risks which results in lower default rates and write offs. Overall, higher efficiency and lower default rates result in higher returns on capital employed.
- Due to higher transparency and efficiency lenders become more attractive for donors. Additionally, the total cost of ownership for awamo’s solution is very affordable and the licensing model is very flexible.
- No more paperwork and massive reduction of back office work.
- Our software is very user friendly so that credit agents save much time and error rates drop significantly. No additional replication of data captured on questionnaires required.
- Multiple customer visits for the same loan can be avoided.
- Broader availability of credit stimulates the MSME sector and sustainable economic growth.
- Additional job creation by awamo itself, by MFIs and MSMEs means higher employment and additional tax revenues.
- The creation of local businesses and economic growth results in better local development.
- Financial inclusion is supported.
- The efficiency of economic development programs can be evaluated in detail and the 360° view on consumers/borrowers prevents risk shift from formal to informal sector.
- More transparency in the informal sector and alignment of business processes between formal and informal financial sector.
- Measurement of donor funded activities/projects is possible in great detail.
- Even sustainable asset managers can become donors due to very detailed credit risk prediction, -measurement and mitigation for regions and single MFIs / SACCOs.
- Improved access to finance for the poor and job creation in the MSME sector lead to poverty reduction and better chances for a self-determined life for many.