Yabx, a cloud-based lending platform, that utilises AI scoring, has collaborated with the Solomon Islands National Provident Fund (SINPF) and the United Nations Capital Development Fund (UNCDF), to create mobileFund, a groundbreaking instant digital loan product, will soon be available to all Yousavers in the Solomon Islands.
YouSave, is a voluntary contribution scheme under SINPF, encouraging self-employed individuals to save for later life. The mobileFund represents a significant milestone as the first-ever Instant Digital Loan product introduced in the Pacific Islands.
This innovative solution, ranging from SBD$50 to $2,000 (equivalent to US $6 - $242), aims to cater to the immediate financial needs of individuals, especially those in the informal sector lacking credit history or collateral.
Yabx's advanced technology enables real-time credit scoring and limit-setting by analysing borrower behaviour within provident fund accounts, empowering previously excluded individuals with accessible and instant financing options.
Yabx will use SINPF data to build the credit score and limit of these borrowers – available to all SINPF YouSave members. The funds can be used for small investments, with repayment terms of up to 90 days. Successful repayment of the loan contributes to the user’s credit score, automatically qualifying them for another loan the next time they apply.
The 'mobileFund' pilot project, currently undergoing testing in the Central Bank of Solomon Island's regulatory sandbox for FinTech innovations, marks a pivotal step towards fostering financial inclusion in the country.
Through seamless mobile applications and instant approvals, regardless of geographical location, eligible applicants can receive funds directly into their M-SELEN accounts (a Mobile Money service), thereby eliminating barriers to accessing formal credit.
Anirban Pramanick, Head of new markets, commented: "We're thrilled to join forces with SINPF and UNCDF to introduce the first instant digital loan product in the Pacific Islands. Our mission has always been to drive financial inclusion through innovative solutions, and this collaboration aligns perfectly with our objectives, ensuring that Solomon Islanders have access to credit for emergencies or essential investments.”
Zoe Victoria Tate, UNCDF Country Lead for the Solomon Islands said: “Uptake of formal credit is low in the Solomon Islands, although studies show there is a demand for it. Digital loans like “mobileFund” contribute to the economic empowerment of women and entrepreneurs. With access to finance through “mobileFund”, Solomon Islanders can now invest in their businesses and contribute directly to the economic growth of their families, their communities and their country. As with every financial product, it is important to use it wisely and UNCDF continues to invest in digital and financial literacy interventions alongside this exciting innovation.”