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CFI IN BID TO DEVELOP CREDIT SCORING SYSTEM

By Qondile Ntiwane | 2020-01-27

In a bid to promote responsible lending, the Centre for Financial Inclusion is (CFI) is currently developing a credit scoring system for the irregular income earners.

CFI CEO David Myeni said the National Financial Inclusion Strategy (NFIS) for the Kingdom of Eswatini 2017–2022 stated that the lack of a credit reporting system was one of the biggest barriers in that credit providers do not have full credit information about their clients, hence are not able to take informed credit lending decisions.

He said he believed the newly-launched MTN Mobile Money (MoMo) quick loans service would also assist in this area.

“I am happy that this product will be using the transaction history from the customers to determine their affordability,” he said.

The CEO added that issues of responsible lending and consumer protection had to be emphasised to ensure the product improves the lives of the people.

Myeni, who was keynote speaker during the launch of the MoMo quick loans lending service product, said the product now went beyond financial inclusion in terms of accessibility and speaks to quality products available to the masses.

“Using Mobile Money to transact and save remains a key priority in our National Financial inclusion strategy.

“On mobile money, everyone qualifies to use the service since it needs just a simple basic phone, no paper work and on boarding is free of charge, funds remain intact, no charges to deplete what has been put on a mobile money account, offers privacy and account protection through the PIN and the availability of agents everywhere you go makes cutting transport charges an additional advantage to the consumer,” he said.

He also emphasised the importance of continued monitoring and evaluation of this product as it was being used.

“A good build-up to the product would be to add a savings option on the lending service.

“We look forward to more strategic partnerships that will see addition of advances services on Mobile Money like insurance and MSME lending, amongst others,” he said.

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