The scene takes place in Lagos, Nigeria. It is 6am and Kudo is negotiating hard the price for an entire lot of fruits and vegetables with a producer. This stock that he will then sell on the largest market in the city. When it is time to pay, he pianos on his mobile phone and instantly receives a cash credit. Deal!
Kudo has just used the Mobile Lending application developed by Predictus, which allows entrepreneurs and craftsmen outside the banking systems to obtain a credit between €25 and €100, repayable within 30 days.
Predictus' proprietary technology combines several thousand data points on each customer's phone, from financial transactions to daily trips via GPS. It then establishes a personalized credit score based on these habits and offers loans to those who qualify. The entire process, from application download to approval, takes about five minutes.
Predictus was launched by Laurin Hainy, Matthieu Gendreau and Nicolas Berthozat, supported by LeStudio.vc, a start-up studio founded by the founders of PriceMatch (from which the founders come). Newfund led the €1m capital increase that the start-up just completed. The Austrian fintech fund Speedinvest and LeStudio.vc also participated in the tour.
"If we analyze the practices in emerging markets, we see that access to credit is still terribly restricted. Only 7% of women entrepreneurs, for example, have access to capital," says Laurin Hainy.
The founders want to use smartphone data and apply machine learning to create and guarantee high-performance credit products in emerging markets. Predictus aims to create the first bank for the 2 billion under-banked people in the world.