One area the Accion advisory team supported Accion MfB with was developing systems to gather and monitor up-to-date information on the bank’s credit risk. This helped Accion MfB management make better-informed decisions. At the same time, it simplified the process of approving and disbursing loans, giving borrowers faster access to funds and making the bank more competitive.

Accion advisors worked with the Accion MfB staff, building their capacity to produce portfolio risk management reports. They developed an automated process that extracts data from the core banking and loan management systems and imports it into templates that require no specialized software.

During another engagement, Accion’s advisory team and Accion MfB built credit scoring algorithms. They configured tools using behavioral data, like a client’s payment history, and sociodemographic data, like gender, age, and income to more accurately and efficiently assess applicants’ creditworthiness.

Six months after implementing the scores, Accion MfB had cut its portfolio at risk — the percentage of its loan portfolio in arrears — nearly in half. It also more than doubled the number of renewed loans per loan officer. The simplified loan evaluation processes also allowed Accion MfB to reduce training expenses.

Over the years, the two organizations have also collaborated on designing separate scoring systems for new and existing clients and developing a business ranking tool that segmented clients based on their industry and financial health. With all these new risk management tools in hand, Accion MfB now has faster, simpler, more streamlined credit evaluation, loan approval, and collections processes.

Clients

1st Valley Bank

Accion Microfinance Bank

Aire

AllLife

Apollo Agriculture

artoo

Aye Finance

Azimo

Banco Ademi

Banco Financiero del Perú

Bancompartir

BancoSol

CIM

Citi Foundation

Civico

Clip

Coins

Company Builder

Compartamos Banco

CrediConfia

Credinka

CreditMantri

CredRight

Dawn Microfinance

DemystData

Destacame

Dialogue on Business (DOB)

Escala

FAMA

First Access

First Circle

ftcash

Fundación Paraguaya

GKN

Grassland

IFMR

Konfio

Kopo Kopo

Leaf

lendstreet

Lidya

Lulalend

Lumkani

Mibanco

NeoGrowth

Northern Arc

NOW Money

Ovante

Pula

RevolutionCredit

Saija

Salud Facil

self lender

SmartCoin

SmartMEI

SMECorner

Socremo

Sogesol

StreetShares

Sub-K

Swadhaar

Tez

Tienda Pago

Toffee Insurance

Ugafode

Varthana

Vindhya

Yoco

Zoona