Egyptian fintech start-up Cassbana, which builds financial identities for underserved and unbanked communities, has grown rapidly and has already provided more than 10,000 loans in 14 cities.
Founded in June of last year, Cassbana uses machine learning and AI to deliver financial identities to underserved and unbanked consumers, with its technology and data, sourced from an Android app, empowering financial institutions and businesses to create innovative solutions loan and financial support by analyzing patterns of consumer behavior.
The company initially launched its services on a trial basis with a service provider in Cairo, but within a year it has now facilitated 10,000 loans in 14 cities, with a default rate of 1.6%. Haitham Nassar, founder and CEO of Cassbana, believes the startup is building a behavior-based scoring system and intelligent data analysis system that is the future of data-driven financial advice.
“By developing mobile technology and data science algorithms, Cassbana is disrupting the way financial identities are constructed in the modern financial industry. Cassbana’s primary goal is to reach and penetrate underbanked segments in growing MEA markets, using alternative data, network behavior and instant credit, ”said Nassar.
The start raised a US $ 1.4 million pre-seed round earlier this year, and plans to start a new cycle later this year. The overall goal is to tackle a major problem.
“Globally, almost two-thirds of adults without an account at a financial institution said they had too little money to use one. More than five billion people around the world own and use a mobile phone, while 1.7 billion adults do not have access to financial services, ”Nassar said.
“One in five of them attribute the fact that they are unbanked to their inability to provide personal information, demonstrate a credit history or justify their financial behavior. Banks and other financial institutions still rely on the collateral-based rating system or KYC, and are unable to meet the capital needs of underserved people due to the lack of financial data on these populations.
For this reason, 77 percent of Egypt’s 65 million remain unbanked and financially underserved. Cassbana is here to solve this problem.
“We help individuals and businesses by giving them access to useful and affordable financial products and services that meet their needs, delivered in a responsible and sustainable manner with an emphasis on the constant integration of financial literacy at the heart of every offer, product and service. “Nassar said.
Cassbana has ambitions beyond Egypt, however, and plans to start expanding into other markets in the Middle East and Africa with similar inclusion issues next year. The startup, which monetizes through interest rate income and is already making a small profit, knows it has competition, but believes it has an advantage.
“FinTech is a hot space now, and there’s noise everywhere, so the challenge is always to stay focused on your customers, not the competition or the noise,” Nassar said.