M-KOPA has reached one million customers in Nigeria by providing asset financing, primarily smartphones, using them as collateral for credit. This scalable model offers financial inclusion to the unbanked, enabling them to build credit history and access further financial services.
M-KOPA's model of using smartphones as collateral for asset financing provides a scalable solution for financial inclusion in emerging markets. This strategy effectively de-risks lending to unbanked populations, opening a pathway for millions to build credit history and access a wider range of financial services, a model with strong potential for replication in other regions facing similar challenges.
M-KOPA reached 1 million customers in Nigeria, its fastest-growing market.
The company deployed over ₦230 billion in credit using smartphones as collateral.
The model provides a credit ladder for the unbanked, starting with smartphone financing and extending to cash loans.
The model provides a credit ladder for the unbanked, starting with smartphone financing and extending to cash loans.
The use of embedded software for payment enforcement results in single-digit loss rates.
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