Smart rolls out mobile microfinance program

MANILA, Philippines - Voyager Innovations Inc. (Voyager), a digital financial and commerce unit of Smart Communications Inc. (Smart) has entered into a strategic partnership with Cash Credit, a Sofia-based financial technology company.

The companies will jointly aggressively roll out a mobile-based microfinance program in the first half of 2015, applying big data analytics to offer innovative financial services to Smart’s combined subscriber base of over 75 million.

Voyager president and chief executive officer Orlando B. Vea said that Cash Credit’s pioneering expertise in aggregating, analyzing and applying data to offer innovative microfinance solutions, will further promote electronic financial access among the under-banked and unbanked segments of the Philippines population.

“It will leverage on the prevalence of mobile phones in the country with over 100-percent penetration rate,” Vea added.

Under the agreement, Cash Credit will bring its expertise on lending to individuals through innovative partnerships with mobile network operators (MNOs) around the world.

Based on big data analysis, Cash Credit’s proprietary decision-making model for credit scoring includes subscriber call and texting usage, payment and behavioral data.

The credit services to be offered include micro-credit loans, airtime top-up credit, utility bill payments and credit for airtime resellers.

The Sofia-based financial technology company will be responsible for underwriting the loans and managing all the risks with their advanced data analytics technology.

Cash Credit, which in 2013 attracted a $25-million investment for international expansion from the investment arm of Delta Partners, a leading global TMD advisory and investment firm, now operates similar programs in partnerships with major MNOs in Africa, the Middle East and Europe.

Voyager Innovation is a wholly owned subsidiary of Smart Communications focusing on creating platforms and solutions for digital commerce.

Smart’s parent company, the Philippine Long Distance Telephone Co. (PLDT), which is the leading telecommunications service provider in the Philippines.