As the likes of Pagatech and mpesa go into action in Nigeria, one thing remains clear – there is no credit scoring system in the nation. People are still making loans based on human networks and collaterals which may not be optimal.
A key barometer for these players will be using that massive data they will collect to make sense of people’s credit worthiness. This has eluded the banks for ages, but these mobile payment system can easily do that. It has to begin by following the people financial patterns and using that information to build a risk profile on them.
These are key things that must happen in the mobile payment system:
- Aggregate data,interprete and build credit profile
- Help people better manage their finances. We need to get mint in the phone
- credit process and supply chain platforms for startups, rampups and speedups and indeed SMEs
- share with government (yes, it is possible that informal economy will be collapsing as government can track financial health of farmers and others via mobile payment platform. As governments build that data, these informal sector folks may be targeted and required to pay taxes, etc. (Afraid of tax? Do not be scared to get a mobile payment account – we are just theorizing here. Government has not said anything)