Accessible credit to remittance clients
About
Applicant name: RemitRadar Limited
Innovation Name: Accessible Credit to Remittance Clients
Innovation Type: Service
Website: https://remitradar.com/
Mission: Improve the financial inclusion of 250 mln migrant workers and give them better access to credit
Innovation Description: RemitRadar teams up with financial institutions that are interested in offering credit services to migrant workers. We calculate a Pre-Approved Credit Limit for every sender of remittances based on the frequency and average amount of his/her transactions and probability indicators of customer default. Customers are informed about the PACL online via RemitRadar digital channels or offline by participating MTOs and merchants.
A credit limit is offered by a participating financial institution to the sender of remittances to enable the receiver to purchase goods in Points of Sale and pay in up to 12 monthly instalments with the remitted funds. The credit capital is provided by a microfinance or credit institution. All the parties benefit due to the synergy between remittance and credit realized by RemitRadar technology.
Innovation Inspiration: It is unfair that 250 million active and entrepreneurial migrant workers have so little access to credit. They work and have >$1.5 trillion combined income – but no credit history in the country where they work. The banks have no scoring data on them and therefore cannot lend to them. We spotted the need because we provide migrant workers with free and unbiased remittance comparison and have personal data on 12 mln users of our service across the world – therefore we understand their needs very well.
RemitRadar identifies regular remittance recipients and provides a one-stop technology to offer and process lending offers to them. As we also have the remittance sender data (including age, sex, amount of regularly transferred money), we can assess his/her the income characteristics and calculate a Pre-Approved Credit Limit.
Who benefits from the innovation most? Beneficiaries:
Banks and finance companies get new customers
Migrant workers and their families get better access to credit, the recipients of remittances can pay for goods in instalments.
MTOs get extra income for processing the paperwork and sharing the results of the KYC-AML that they have to do anyway
Merchants can move goods better when payment in instalments in possible
Audience:
potentially all the 250 million migrant workers and 700 mln family members / recipients of remittances
Partners:
Banks and micro-finance organizations
MTOs (they take part in processing the paperwork and the KYC-AML)
Merchants (sell goods in instalments against the remitter’s credit)
Regions
The project is global but the current pilot includes Moldova, Armenia and Tajikistan where payment gateways are already in place and partners process utilities and other bills payments, helping to assemble the data for scoring.
What are you most proud of about your innovation? This innovation builds on the foundation of 5 years of data aggregation from 361 money transfer operators in over 100 countries and a data base of 12 mln users of our remittance comparison service.
This service is free to remittance users; therefore the main challenge has been related to funding. Monetization cannot start before the technology, the client base and the partner relationships are in place, and this takes time and capital.
We are different because we use advanced tools: API to connect with MTOs, AI chatbot integrated in social media, proprietary algorithms that brought us impressive organic traffic (we have never paid for traffic). We are proud to gain the attention of UN agencies as a socially important service.
We are not aware of other services that have the technology in place for taking the advantage of the synergies between the remittance, credit and insurance offerings to migrant workers. Various existing solutions stop at lead generation-referrals-sales but lack the actual digital processing backbone.
Status of Innovation: Pilot
Innovation Active Since: 03/01/2020
Applicant Type: Private Company
Headquarter City: London
Headquarter Country: UK
Year Founded: 2014
Main Category
Main Category Choice: Remittance Synergies
Why do you think you should win this category?:
Our innovation ties together three industries: remittance, lending, and retail. Beneficiaries: finance organizations, MTOs and merchants.
We expect to improve financial inclusion of migrant workers and their families (950 mln people) across the world, who have a very limited access to credit, although they work and have money. The roots of the problem are:
• Lenders have limited access to cross-border data for migrant workers’ credit scoring.
• They lack cross-border relationships with merchants that can offer point-of-sale credit to the remittance recipients against a credit limit approved for the remittance senders.
As we own global data, we offer a digital solution to the problem.
Our model for Moldova shows that 13,2% of all remittance senders are potentially eligible borrowers:
– 80% of all senders, who make 10 and more transactions a year
– 40% of those with 4-9 transactions a year
– 2% of those with 1-3 transactions a year
RemitRadar team unique expertise and experience is shown in the TEAM section and pitch decks below.
Secondary Category
Secondary Category Choice: B2B Solution
Why do you think you should win this category?
Our innovation opens new opportunities to remittance, lending, and retail businesses.
A huge number of people is excluded from lending field: 250 mln migrant workers have money and need access to credit but are not financially included, as lending institutions lack the cross-border data to determine their credit scoring. They also lack cross-border relationships with merchants who can offer POS credit to the remittance recipients against a credit limit approved for the remittance senders. We propose our cross-border capabilities to collect and process needed data.
A wide range of businesses will benefit from new revenue streams: banks/microfinance organizations, MTOs and merchants.
Our model for Moldova shows that 13,2% of all remittance senders are potentially eligible borrowers:
– 80% of all senders, who make 10 and more transactions a year
– 40% of those with 4-9 transactions a year
– 2% of those with 1-3 transactions a year
RemitRadar team unique expertise and experience is shown in the TEAM section and pitch decks below.
Team Members
Full Name: Sergey Markov
Role: CEO
Linkedin: https://www.linkedin.com/in/
Full Name: Denis Kochubey
Role: CTO
Link: https://uk.linkedin.com/in/
Full Name: Dmitriy Grishin
Role: CMO
Link: https://www.linkedin.com/in/
Full Name: HRH Prince Michael of Kent
Role: Global Ambassador
Link: http://www.princemichael.org.
Supporting Links
Pitch deck on Lending to Migrant Workers with RemitRadar: https://www.dropbox.com/s/
RemitRadar General Deck: https://www.dropbox.com/s/
Entry Representative
Full Name: Sergey Markov
Role: CEO
