Fintech platform M-KOPA hits 5mn customers, $1.5bn in credit distributed

M-KOPA, a leading fintech platform in Africa, has recently celebrated a significant milestone, reaching five million customers and distributing over $1.5 billion in credit across key African markets, including Kenya, Uganda, Nigeria, Ghana, and South Africa. In an exclusive interview with CNBC Africa, Nena Sanderson, Chief Product Officer at M-KOPA, shed light on the company's journey towards financial inclusion and the innovative strategies they have implemented to empower everyday earners on the continent. Established over a decade ago, M-KOPA has revolutionized the traditional lending model by offering inclusive financing solutions tailored to the unique needs of their diverse customer base. Sanderson emphasized that the success of their financing model is attributed to its customer-centric approach and continuous refinement based on practical insights gathered over the years. Key Points: 1. Innovative Financing Model: M-KOPA's financing model is designed to cater to customers with limited access to traditional financial services. By financing smartphones, which serve as collateral for loans, M-KOPA extends credit to individuals with no credit history, payslip, or bank account, setting them apart from conventional lenders. The daily repayment schedule aligns with the cash flows of everyday earners, providing flexibility and ensuring affordability. 2. Community Impact and Local Assembly Facility: M-KOPA's commitment to local manufacturing is exemplified through the establishment of Kenya's first smartphone assembly facility. With over a million phones assembled locally, the company has not only enhanced the affordability of high-quality smartphones but also generated over 300 full-time jobs, contributing to economic growth and skills development within the community. 3. Sustainability Initiatives: In a bid to reduce the environmental impact of electronic waste, M-KOPA has expanded its capabilities to include local refurbishment services. By refurbishing and repairing used phones, the company aims to prolong the lifespan of devices, minimize carbon footprint, and promote a circular economy while ensuring continued access to affordable technology for customers. Sanderson highlighted the significance of trust, rigorous know-your-customer practices, and the utilization of smartphones as collateral in mitigating risks associated with collateral-free lending. The company's dedication to empowering underbanked populations through tech-driven solutions has positioned them as a trailblazer in the fintech sector across Africa. Quote: Sanderson expressed, "By trusting customers, having strong know-your-customer practices, and utilizing devices as collateral, we have demonstrated the viability of our financing model, enabling us to deploy billions of dollars to the underbanked segment."M-KOPA's relentless pursuit of financial inclusion, coupled with their sustainable business practices and commitment to community upliftment, underscores their pivotal role in driving economic empowerment and technological advancement in Africa's financial landscape.