At Sevi, we want to lower the world average interest rate in micro-finance from 42% back to 10% annually.
If today your are a small business entrepreneur living in Africa, South America or Asia you can get a loan to grow your business, but you will pay an interest rate between 37% and 365% annually. Instead of growing a business they are enslaved to repaying the loan.
It is Sevi’s mission so solve this by enabling Microfinance organization(MFIs) to provide responsible and affordable loans to (micro) entrepreneurs. We combine the natural advantages of group lending in limiting default risks by lending to low-income customers with the efficiencies and speed that the mobile, digital revolution offers.
Even though interest rates are high, MFIs struggle to be commercially viable. Their loan process and the acquisition of new clients is too costly because it is mainly manual and offline. Meanwhile, MFIs are starting to lose market share rapidly to mobile individual loan apps, while they are traditionally strong in supporting small and more vulnerable clients. There is growing evidence that through the emergence of these new mobile loans many borrowers are getting over indebted and listed with credit bureaus. Such a listing seriously limits their future potential to borrow .
Sevi is an IT platform and app for microfinance institutions (MFIs), that makes their financial services more efficient with lower defaults, allowing MFIs to provide more affordable loans to low-income customers and serve them faster.
Group lending is the cornerstone of the success of MFIs to provide microloans to people who were excluded from access to banking services. Sevi is the first company that has successfully digitalized and transformed the group lending process and solidarity mechanism behind it.
Our automated, digital lending platform Sevi consists of a:
– Fully automated know-your-customer (KYC) and verification process
– Gamified trust score
– Transparent mobile wallet for microloans.
In our tech and touch approach, the loan officer can focus on advising and training clients instead of being an administrator. The platform offers MFIs greater transparency into their business and better insights into customers’ needs. These advantages help them to become future proof and provide a responsible alternative to digital lending by unregulated fintechs.
The Sevi platform has been designed to scale up rapidly to provide millions of microloans via the platform in Kenya and other countries at a later stage.