Microcredit

Microcredit engaged with Paynetics to streamline its lending process and improve collection.

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Microcredit

What we did for Microcredit

Acquiring | Issuing

Client and Brief

Microcredit is a lending institution focused on providing small loans to clients in the near prime and subprime segments. Traditionally it has relied on an extensive office network and a large pool of agents to serve its clients. Most of the loans are disbursed in the offices and payments are collected mostly by agents. Looking to streamline the process and move it more to the digital space Microcredit looked the payment capabilities of Paynetics for an answer.

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Our Strategy

Reduce cash handling and move online

Microcredit

We looked at how to address some of the more laborious and inefficient parts of the process and focused on the disbursement of funds and collection. At the same time it was important to take into account the existing business model and offer products that would not harm the business by insitgating too much change. Our virtual POS was an ideal instrument to move repayments online, as it offered an additional channel, not disturbing the prevalent collection practice but at the same time it provided the opportunity for a large part of the client base to pay their instalments online. With regard to disbursement we provided Microcredit branded debit cards, reducing the administration expenses related to bank transfers.

“We see the project as a good example of how we can assist our partners to achieve cost optimization and improve customer retention rate, and at the same time help them monetize the exisitng customer base through co-branded cards.”

Microcredit

Kaloyan Tonchev

CFO @ Paynetics

The Impact

Lead the way in digitizing microlending

Digitise

disbursement and collection

20% reduction

in collection expenses with vPOS

Microcredit became on the of the first microlending institutions to start moving away from relying on an extensive branch network. It launched its branded debit card to be used for both loan disbursement and general purposes. This proved to have wider implications as some of its client base was unbanked and through the debit card product Microcredit managed to incentivize them to join the financial system.

Microcredit integrated the Paynetics virtual POS, thus improving the efficiency of collection and also supporting the new online lending product which the company launched as part of its diversification strategy and last but not least they generate additional revenues from the issuing services.

“Paynetics is a very flexible company, which understood our needs into all the details and gave us the most appropriate payment solution “

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Georgi Atanasov

CEO @ Microcredit

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