Lendable app helps social enterprises extend credit and secure finance
Shell Foundation partner Lendable has launched a new initiative called Lendable Labs to help companies providing credit to low-income consumers improve credit quality using data management and analytics tools.
The Lab's first tool is an app that helps businesses providing essential services such as solar power to prioritise cash collection by analysing which customers are most likely to fall behind in repayments. Improved collections prioritisation allows businesses to reduce risk, lower costs, improve repayment rates and extend their services to customers with greater confidence.
“Our goal with Lendable Labs is to offer a valuable analytical resource to our partners and alternative lenders around the world” said Daniel Goldfarb, Lendable CEO.
“The Customer Quality Score (CQS) tool analyses individual loan repayment data and other demographic factors to predict the likelihood that a customer will pay and when and how much. The CQS tool provides an incredibly simple prioritised list of interventions to a credit officer, allowing him or her to focus their limited time where it will make the most difference.”
Currently being piloted in East and West Africa, Lendable plans to publish their findings on the increase in rate of repayment using the tool, before launching a market ready version later this year.
Who is Lendable?
Lendable is a financial intermediary that uses data management technology to identify investment opportunities, assess deal risk and monitor performance in order to increase confidence for investors, whilst also providing a new way for product originators to raise capital without upfront cost and benefit from an independent assessment of their own portfolio risk.
SF has worked with Lendable since 2015, supporting them to develop finance solutions that enable social enterprises to grow and serve many more customers.